Maldives Civil Court ruled recently that the government is not liable to pay MVR74 million as reparations for its seizure of GDh. Kautihulhudhoo.
The island has been leased for agricultural and poultry purposes.
In 2013, government leased the island to Sunny Farm, but repossessed the island back in 2020 citing insufficient work carried out in the part of the private business. This was a violation by the company towards the contractual agreements between the parties. Sunny Farm contested the claim citing presence of a third-party in the island.
The company filed for USD4.8 million in damages at Civil Court last Wednesday, 26th October 2022. The court ruled despite the presence of a third-party in the island, the company failed to follow procedures included within the agreement to apply in such circumstances.
The court therefore, held that the state’s repossession of the island cannot be deemed a violation.
The judgment further identifies that Sunny Farm failed to provide proof of how they arrived at the compensation they were demanding. With the absence of sufficient supporting documents, the company’s report alone is not enough to prove their claim.
