Constitutional Petition Filed in Supreme Court Over Rasmalé Deal

MV+ News Desk | September 29, 2026
Ali Hussain addresses the Supreme Court during the hearing on the constitutional challenge to the anti-defection amendment.

Lawyer Ali Hussain has filed a constitutional petition in the Supreme Court of the Maldives challenging the validity of the Government’s Commercial Terms Agreement with UAE-based developer Eagle Hills for the Rasmalé development project.

The petition concerns the agreement signed on 21 September 2026 between the Ministry of Infrastructure, Housing and Urban Development, on behalf of the Maldivian Government, and Eagle Hills. It argues that the arrangement conflicts with constitutional provisions governing State property and foreign interests in Maldivian land.

In a press statement, former MP for Kendhoo constituency Ali Hussain said that while the full text and particulars of the agreement had not been publicly disclosed, statements issued by the Government and Eagle Hills indicate that more than 500 hectares of reclaimed land at Fushidhiggaru Falhu have been granted to Eagle Hills for 99 years.

Ali Hussain further alleged that the arrangement provides Eagle Hills with interests in the land without a lease acquisition cost or lease rent, and allows the company to create leasehold interests for third parties over properties developed on the site.

The legal challenge rests primarily on two constitutional provisions.

Article 250: The petition argues that the Constitution requires any transfer, sale, lease or disposal of State property or assets to be carried out in accordance with the law. Ali Hussain contends that there is no existing statutory framework authorising the executive to grant State property to a foreign entity through a 99-year leasehold arrangement of this nature.

Article 251: The petition also challenges provisions that Ali Hussain says allow Eagle Hills to create successive third-party leasehold interests over properties developed on the land. He argues that such an arrangement could enable foreign parties to retain proprietary interests beyond the constitutional 99-year limit, potentially creating interests without a defined final expiry date.

The petition asks the Supreme Court to declare the agreement unconstitutional and void ab initio.

Ali Hussain has also submitted an application for an interim order seeking to suspend implementation of the agreement while the constitutional challenge is being considered. The application seeks to prevent the creation of third-party rights and interests during the proceedings, citing the potential difficulties of reversing such arrangements if the court ultimately rules against the agreement.

The Government has maintained that the arrangement does not constitute a sale of the reclaimed land. Finance and Public Enterprises Minister Hassan Zareer and Infrastructure, Housing and Urban Development Minister Abdulla Muththalib have said that ownership of the underlying land remains with the State.

The ministers have also stated that investors will be able to own properties developed on the site under the arrangements established for the project, while the underlying land remains State-owned.

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