Kalhudhiyafushi put up for sale a third time

Bank of Maldives (BML) has put Kalhudhiyafushi of Thaa Atoll, an island being developed as a tourist resort, up for sale for a third time, after foreclosing due to the borrower's failure to repay a loan taken from the bank.

As per the announcement by BML, interested parties are required to submit their bits prior to 12 pm on 30th June, while successful bid applicants will need to make a deposit payment of USD 100,000.

While bids starts from USD 34,258,000 this time round, in September of 2021 the island's price was USD 4 million lesser, at USD 30 million. The first time BML attempted to sell the island, which was in September 2019, the price stood at USD 29.5 million.

In its sale note, BML detailed that it granted banking facilities to Huravee International Pvt. Ltd, of which a large share is held by former MP of Thaa Guraidhoo constituency Hussain Manik Dhonmanik, via a facility agreement in 2016.

However, the bank had to subsequently seek relief from the courts due to the borrower defaulting. As such, in February of 2019, the Civil Court granted BML rights to sell the mortgaged assets and recover dues payable to the bank.

The island was initially leased via Maldives Marketing and Public Relations Corporation (MMPRC) to be developed as a resort, and subsequently underwent investigation by Anti Corruption Commission (ACC) over the MMPRC embezzlement case.

The agreement to develop Kalhudhiyafushi as a tourist resort was signed between Tourism Ministry and Huravee International on 24th August, 2015, with former tourism minister Ahmed Adeeb signing on behalf of the ministry.

The island, which is located near Gaadhiffushi island of Thaa Atoll was scheduled to open in 2017, with 97 private villas, 100 rooms and three restaurants to be developed in collaboration with international hotel chain Meliá Hotels International.

However, only about 80 percent of the resort's work has been concluded as of yet.