The Maldives government has filed a lawsuit against India's MM Export for failing to pay a fine of MVR 110 million, despite eight years of attempts to secure compensation.
In 2015, a barge operated by MM Export capsized on Kaafu atoll Fushidhiggaru reef. Following the incident, the local courts ordered the company to pay a fine of MVR 110 million. However, even after eight years, MM Export has failed to settle the fine with the Maldives government. As a result, the government has filed a lawsuit against the company.
MM Export, known for previous incidents involving the capsizing of tug boats and barges on reefs, was granted three extensions to settle the fine but failed to comply. The Ministry of Environment, Climate Change and Technology and the Environmental Protection Agency (EPA) subsequently ordered the company to settle the outstanding fine.
After the company failed to comply, the Environmental Protection Agency (EPA) lodged a case against the company with the Attorney General's Office. An official from the office confirmed that the lawsuit against MM Export was filed at the Maldives Civil Court in December 2022.
"The court has granted time for the defendant to prepare for the lawsuit before the trial begins," the official said.
A total area of 4,370 square meters from Fushidhiggaru reef sustained damages after a barge from MM Export capsized on it.
Additionally, a tug boat and a barge, both belonging to MM Export, capsized on the Haa Alifu atoll Dhihdhoo reef as well. While the barge was successfully righted, the tug had to be towed by another tug boat sent from Malé, according to the Dhihdhoo Council. The council also said that a team from the EPA will visit the island to assess the damage caused to the reef.
Earlier in 2014, another vessel belonging to MM Export capsized on Kaafu atoll Thilafushi reef. Following the incident, the company was initially fined MVR 22 million, but upon their request, the fine was reduced to MVR 2.8 million.
While MM Export is facing a lawsuit over reef damages, another Indian company currently operating in the Maldives, AFCONS Infrastructure, has been ordered to pay a fine for reef damages in Kaafu atoll Vilimalé.
After a bridge platform, which was used in the development of the Thilamalé bridge connecting Malé, Villimalé, Thilafushi, and Gulhifalhu crashed onto Vilimalé reef, AFCONS was ordered to pay a fine of MVR 69 million. However, Afcons refused to pay the fine and appealed the case to Maldives Minister of Environment, Climate Change and Technology, Aminath Shauna.
When asked about the delays in the case, the Minister said that the government had no intention of waiving the fine.
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