Maldives National University (MNU) pressed charges against Housing Development Corporation (HDC) over the company's failure to provide MNU with land for the construction of two towers in Phase two of reclaimed suburb Hulhumale', as per their agreement during the previous administration.
MNU's Vice Chancellor Dr Ali Fawaz Shareef told local media Mihaaru that the university filed for compensatory damages at the Civil Court last Sunday when HDC illegally nullified the agreement two months ago.
"HDC nullified the agreement unlawfully while detailed drawings were submitted. Therefore, we have asked for compensation", Fawaz said.
Singaporean company RI Engineering was tasked with completing the drawings, which cost MVR 21 million, according to the university. However, construction has yet to commence.
The university requested the court to determine the amount to be paid in compensation.
HDC's Managing Director Suhail Ahmed stated that the agreement was terminated as per the current government's instructions.
"The decision wasn't made against the university. The decision was made because the government has decided to halt all the projects that have not commenced", Suhail explained.
The university towers were to be constructed on 10,000 square feet of land per tower.
Former President Abdulla Yameen Abdul Gayoom's administration aimed to build 62 towers of 25 storeys in Hulhumale' Phase Two, targeting a population of 80,000 individuals.
This includes four towers for Maldives Customs Service, three towers for Island Aviation Services Ltd (IAS) and two towers each for State Electric Company Ltd (STELCO), Maldives Transport and Contracting Company (MTCC), Maldives Ports Limited (MPL) and Waste Management Corporation Ltd (WAMCO).