Fanas being sold due to failed resort payments

The mortgaging of G. Fanas was due to a resort development project in Th. Kalhudhiyafushi which was an island handed over by MMPRC. The Fanas plot has been identified as former Th. Guraidhoo MP Hussain Manik Dhonmanik's.

The 1,469 square foot plot is located at Ameenee Magu and is known to house the well-known Odegalla Coffee.

As per MIB, the starting price for the auction is MVR 30,230,000.

Huravee International had picked the General Asset Financing facility from MIB after mortgaging the plot and acquiring a loan of USD 3.4 million (MVR 52.5 million) and then subsequently failed to pay it back. The Managing Director of said company is Hussain Manik Dhonmanik. The Director of the company is Mohamed Fayaz (FA) who currently resides in Malaysia, who had previously served as State Minister at the Home Ministry, as Deputy Police Commissioner and as a Maldivian Ambassador.

Shareholders include Island Experts (in charge of constructing flats for the police and military personnel) Managing Director Anon Songpanya and FA, one of two investors from AddOn Investment.

The Civil Court had ruled that the loan was to be paid back in 2022 but no payments were made. The Civil Court ruling was upheld by the High Court.

Therefore, due to the loan not being paid, the Civil Court granted MIB the permission to sell the mortgaged land after filing a case. The sale of the plot will also include fixed property.

The development work on Kalhudhiyafushi was started with Spain's Melia Hotels. The project came to a halt as work had not progressed. The island was handed over by MMRC on 24th August 2015.

The resort was to be completed in 2017 with 97 private villas and 100 rooms. Huravee International had also taken a loan of USD 10.6 million from Bank of Maldives (BML).

The loan from BML was taken after the island had been mortgaged. The loan repayment had not moved forward even after the Civil Court had told them to pay it back within a specified time period. With permission from the court, the bank has announced the sale of the island multiple times.