Court Blocks Transactions on Hulhumalé Plot Amid Unannounced Sale Controversy

The Civil Court has issued an interim injunction preventing the government from selling, transferring, or creating third-party rights over a Hulhumalé Phase 2 plot previously allocated under the Binveriyaa housing scheme.

The court issued the order on Tuesday after former Elections Commission President Mohamed Zahid sought an injunction over the property, following revelations that the government had attempted to sell the plot to a private individual without a public announcement.

The vacant plot was originally allocated to Zahid. The Housing Ministry cancelled his agreement and revoked the land title in July 2023 after determining that he did not meet the scheme’s eligibility requirement of being a native resident of Malé.

The issue came under scrutiny earlier this month after a leaked Housing Ministry memo revealed an attempt to sell the unallocated plot to an individual named Ahmed Zahir at a price below its market value.

Zahid subsequently filed a case against the ministry and asked the court to prevent any dealings involving the property until the dispute over its allocation and cancellation is resolved.

In granting the interim injunction, the Civil Court said the central issue was whether the land had been validly allocated under the social housing scheme and whether the subsequent cancellation of the title was lawful.

The court also considered the potential consequences of granting or refusing the injunction. It noted that granting the order would primarily require the state to delay any transaction involving the property, while refusing it could result in irreparable harm to Zahid if the court ultimately rules in his favour.

The court therefore ordered the state to refrain from selling or transferring the plot or creating any third-party rights over it until a final judgment is issued.