Letter sent to President to resolve Jaah housing flats issue

A letter was sent yesterday to President Dr Mohamed Muizzu, to address and resolve the prolonged delay in completing Jaah Investment’s "The Garden" flats.

Construction of the project began in 2017, with an initial two year deadline for completion. However, seven years later, the flats remain unfinished, causing significant loss to those who purchased flats from the scheme.

Shunana & Co., the law firm representing affected buyers, highlighted the hardships caused by the negligence in housing projects managed by Housing Development Corporation (HDC).

The letter expressed concerns over the substantial sums charged for the flats and called for accountability, and said that it is HDC’s responsibility to ensure projects progress without harming the public.

The letter also stated that the agreement stipulated the cancellation of the contract and reassignment to another developer if the project fails to meet its deadlines. It further stated that Jaah Investment would be liable for any financial losses incurred by HDC under such circumstances.

Despite these provisions, HDC has repeatedly extended the project deadlines without taking any action.

“Housing Development Corporation has been extending the deadline for completion of the flats on various occasions without taking appropriate action,” the letter stated.

While Jaah Investment stated challenges due to the Covid-19 pandemic, the letter pointed out that the initial delays occurred long before the pandemic and that many buyers have been burdened with loans during this extended period. It also alleged that HDC failed to verify Jaah Investment’s financial capacity to complete the project following the expiration of the first deadline.

The letter noted that workers brought in from abroad to construct the flats have stopped work, protested, and filed complaints with authorities, due to non payment of salaries. However, HDC has not taken adequate measures to address these issues.

“Without taking action against Jaah Investment, no effort has been made to stop this significant loss to the people. We had to escalate this matter to you because it has remained unresolved for two years, despite being submitted to the relevant state authorities,” the letter stated.

The letter urged to protect the rights of buyers and provide compensation for the damages incurred.

In October 2023, HDC announced that it had resumed finishing work on the flats below the 10th floor, including plaster, putty work, wood and ceiling installation. HDC said that all unfinished works on the building would be completed within six months.

The 83 apartments under construction were also tied to a 30-day notice for land payment to Urbanco (HDC). However, the payments were not made in addition to the work being unfinished.

As of now, neither HDC nor Jaah Investment has made a statement on the issue.