Civil Court: state not liable to pay MVR 74M in Kaashihulhudhoo repossession case

The Civil Court has ruled that the state should does not have to pay compensation of MVR 74 million in the case of the government's seizure of Gaafu Dhaalu Atoll Kaashihulhudhoo which had been leased for agriculture and poultry purposes.

In 2013, the government had leased the island to a company called Sunny Farm, and repossessed the island in 2020 citing work had not been carried out according to contractual terms by the company. However, Sunny Farm said that works could not be carried out due to a third party's presence on the island.

Sunny Farm filed for USD 4.8 million in damages in the Civil Court last Wednesday. The court had ruled that despite the presence of a third party in the island, the company had not followed the procedures included within the agreement to apply in such circumstances. Therefore, the government cannot be considered to have seized Kaashihulhudhoo in violation of the agreement.

The judgment said that although Sunny Farm had sought compensation, the documents submitted by the company could not prove how the said amounts were reached. The judgment said that in the absence of evidence to support the documents, compensation could not be taken based on the report alone.