Housing Development Corporation (HDC) has withdrawn its lawsuit seeking MVR 49 million from SeaLife Global Inc. Pvt Ltd, over unpaid advances collected from buyers in the long-stalled Hulhumale' housing project.

The case stems from complaints by 203 individuals who paid booking fees and down payments for flats in the project, only to receive nothing in return. Although SeaLife initially agreed to repay the money, it failed to follow through.

In response, HDC entered into a settlement agreement with the affected parties and disbursed MVR 46 million to 180 of the claimants. However, 23 individuals remain unpaid. HDC subsequently filed suit against SeaLife and its directors, seeking a total of MVR 49 million, which included the unpaid MVR 2 million, plus MVR 400,000 in administrative costs.

Despite this, SeaLife and its directors failed to respond to the court summons, and HDC has now formally requested to withdraw the case. Civil Court dismissed the lawsuit on Tuesday in accordance with the corporation's request.

Civil Court in March had found that HDC had acted lawfully in terminating its 2014 contract with SeaLife, and was not liable to pay any compensation to the company. The agreement, which aimed to develop 3,000 apartments, was annulled in 2018 after SeaLife was found to have submitted a forged performance guarantee and failed to deliver on construction obligations.

Criminal proceedings are ongoing against SeaLife’s former Managing Director Ahmed Moosa (Ammaty), who faces multiple fraud charges related to the project.