Court Rules HDC to Disclose Actions on K-Park Construction Delays
Scale Model of K-Park Residences displayed at the launch ceremony in 2019. Photo: K-Park Residences on Facebook
The Civil Court of the Maldives has ordered the state-owned Housing Development Corporation (HDC) to submit documentation related to its contract with Hanbo Company Limited regarding the K-Park Residences project. The court’s decision is intended to uncover any steps HDC has taken against the developers for not meeting the agreed-upon construction deadlines.
This decision follows an application seeking the disclosure of evidence necessary to file a separate lawsuit related to the K-Park apartments. The applicant has sought access to the original agreement with Hanbo, any subsequent amendments, project securities submitted, and their current status. Additionally, the request includes any no-objection waivers or documents indicating a transfer of the agreement’s execution to a third party.
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Of crucial importance is the written confirmation sought from HDC regarding any punitive measures imposed on Hanbo for failing to meet deadlines and any documentation granting Hanbo the authority to sell apartments within K-Park Residence.
In response to the application, the Civil Court has instructed HDC to provide the requested documents within 14 days. Upon receiving the documents, the applicant has until 30th July to initiate their lawsuit. Failure to do so would require the applicant to return the documents to HDC within five days without further use.
This court order comes as allegations of fraud and deception have surfaced against Hanbo Company and its shareholders regarding the K-Park Residences. Numerous buyers who paid for apartments but did not receive them have initiated legal proceedings; the courts have ordered Hanbo to deliver the apartments to some of these claimants.
Hassan Mamdhooh, Director of Hanbo, faces over 100 criminal charges, including graft and misrepresentation. He allegedly sold properties by deceiving buyers and forging the signature of Jin Shi Hu, Hanbo’s majority shareholder, on sale agreements. Mamdhooh is also accused of embezzling the proceeds from these sales.
Hanbo’s response to the allegations has been to refuse the handover of the apartments, claiming they never received the sale money. This stance has further complicated the situation for buyers and added to the legal disputes surrounding the K-Park Residences.
