HDC incurs MVR 11 billion in loss from 'Binveriyaa' scheme

The Auditor General's Office has estimated that the Housing Development Corporation (HDC) will suffer losses amounting to approximately MVR 10.5 billion (USD 680.93 million) due to the lands issued from Hulhumalé under the 'Binveriyaa' (land owner) scheme.

In the 'Auditor General’s Report on Review of Budget Position Report 2023 and Mid-Term Budget Review 2023' published on Sunday, it was detailed that "according to documents provided by HDC, the estimated losses from allotting these lands for the “Binveriyaa” scheme range between MVR 7.2 billion and MVR 10.5 billion."

"This includes the land value of MVR 7.7 billion and MVR 3.3 billion in loss of revenue generation by using of the land for commercial purposes," the report further reads.

However, the government will make necessary settlements for these losses. According to the report, HDC provided information to the Auditor General's Office confirming that the government has allocated two lagoons, "Galufalhu" and "Maagirifalhu" as compensation of revenue losses to HDC (MVR 3.3 billion), and has also instructed Finance Ministry to come to an agreement with HDC to settle the land cost of MVR 7.7 billion.

"In our view, allocating plots of lands for free under “Binveriyaa” scheme has resulted in a considerable fiscal burden for the Government for the upcoming years," said Auditor General's Office in the report.

The land plots mentioned in questions are a total of 1,000 plots issued for housing purposes from Hulhumalé during former president Ibrahim Mohamed Solih's administration. The total size of these lands amass to 1.2 million square feet, reports confirm.

With these 1,000 plots, the total number of land plots the previous government decided to issue for Malé residents goes up to 9,000. These plots are being issued from Gulhifalhu, Giraavaru Falhu and Hulhumalé.