Maldives Transport and Contracting Company (MTCC) commenced providing ferry services within Meemu Atoll and Dhaalu Atoll.
The company launched services for Meemu Atoll on July 27 while MTCC ferries started operating in Dhaalu Atoll on August 3.
Customers are charged MVR 20 for each transfer.
The government tasked Vermillion International Pvt Ltd with providing transportation in Meemu, Dhaalu and Faafu Atoll in return for leasing out two islands for resort development in 2011. However, the company discontinued transfer services later on.
The two resorts, St Regis Vommuli and Dhoores Retreat Maldives, are still operating in Dhaalu Atoll.
The Ministry of Transport and Civil Aviation has submitted the case of Vermillion International halting ferry services to the Attorney General's Office to determine a suitable penalty.
The administration of former president Mohamed Nasheed leased out several islands and land plots for development on the condition that companies provided domestic transportation.
However, in several instances, the state faced legal difficulties after nullifying such agreements over non-compliance.
The Supreme Court ordered the government to pay MVR 348 million to Dheebaajaa in compensation for terminating the contract in 2010, which was signed between the two for the company to provide transportation services.
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