The lower court granted permission for Bank of Ceylon (BOC) to sell the island of Dolhiyadhoo in Shaviyani atoll should Dholhiyadhoo Investment Pvt Ltd fail to pay its loan of USD 11 million.
The Civil Court made the decision last Thursday, stating that if Dholhiyadhoo Investment is unable to pay the due amount within a period of seven months, BOC may sell the island which is being developed as a resort.
The court also said that should selling the resort fail to generate the total amount of USD 11 million owed to BOC, the loan borrower as well as the guarantors will be held responsible to pay the remaining amount.
Loan guarantors include former parliament member of Bilehdhoo Constituency Ahmed Hamza as well as VA Pvt Ltd.
The Civil Court had previously permitted State Bank of India (SBI) to sell the same resort over a hefty unpaid loan of USD 250 million by Dholhiyadhoo Investment.
Dholhiyadhoo resort development is almost finished, but it remains unclear as to when the resort will be unveiled.