Attorney General's (AG) Office, late Monday, confirmed that India's Lucky Exports and Triveni (LE Triveni), filed for arbitration on March 13, over a nullified agreement to develop water and sewerage systems in the country.
The institution also noted that the company plans to seek further action via the Indian Council of Arbitration, if information regarding the legal proceedings were disclosed by the Maldivian government.
According to the AG Office, LE Triveni also filed a case at the New Delhi High Court after the Maldivian government attempted to secure the USD 483,451 kept as a performance security by the company, from the guarantor, the Indian Syndicate Bank.
However, upon submitting a case against the move at the Delhi High Court on January 29, the court released a temporary ruling to withhold the payment.
Given that the court had awarded an opportunity for Maldives' to provide a defence against the ruling, AG Office revealed that a response was hence submitted to the court on August 14.
Ministry of National Planning, Housing and Infrastructure previously attributed the nullification due to LE Triveni's failure to complete the project within the stipulated time frame of 18 months.
The MVR 149 million agreement was contracted to the Indian joint venture on June 18, 2017, with developing a water and sewerage system in Naifaru, Lhaviyani Atoll as well as a sewerage system and treatment plant in Veymandoo, Thaa Atoll.
Both projects were to be funded by loan assistance from the OPEC Fund for International Development (OFID) and the Islamic Development Bank (IDB).
Sign In
