As part of the arrangement, 19 plots of land registered under the Ministry of Finance were transferred to FDC in exchange for 103 million of the outstanding shares. The two parties agreed on the value of the 19 plots at MVR 1.3 billion.
The Ministry of Finance has transferred MVR 1 billion worth of land to Fahi Dhiriulhun Corporation (FDC) as part of the government’s stakes in the company.
The 100 percent state-owned Fahi Dhiriulhun Corporation now holds 200 million shares. Of the MVR 2 billion worth of shares, the government has not paid for 107 million shares.
As part of the arrangement, 19 plots of land registered under the Ministry of Finance were transferred to FDC in exchange for 103 million of the outstanding shares. The two parties agreed on the value of the 19 plots at MVR 1.3 billion.
The Civil Court validated the transaction and transferred ownership of the 19 plots from the Ministry of Finance to FDC.
The court ruled that the relevant regulations do not mandate payment in cash for such transactions, except where a cash payment is required for prior to the transfer of state owned land.
The ruling cited the regulations governing the privatization and sale of land allocated for residential purposes, noting that the transaction between Fahi Dhiriulhun Corporation and the Ministry of Finance demonstrated that the compensation involved was adequate and valuable to the recipient.
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