SGM ordered to pay MVR 20.7 million for cigarette shipment taken out of a bonded warehouse

Civil Court has ruled that a bonded warehouse registered under SGM Pvt Ltd must pay MVR 20.7 million to the state for the disappearance of over 1,000 boxes of cigarettes stored under customs supervision.

According to the case, 1,060 boxes of cigarettes imported into the Maldives on two separate shipments, April 27 and June 4, 2018, were moved into a bonded warehouse under SGM Pvt Ltd. According to the documents, goods were taken out of the warehouse on September 20, 2018.

The situation came under scrutiny after customs officers attempted to inspect the warehouse but were unsuccessful. On December 29, 2024, acting under a court order, authorities searched the premises and discovered the goods were missing.

Records showed that the shipment included 430 cases of American Legend cigarettes and 250 cases of Afzal Molses pipe tobacco. These goods were initially released from the Male' Commercial Harbor on April 5, 2018, and moved to the bonded facility on September 20, 2018.

SGM Pvt Ltd had issued a cheque to cover customs duties on September 20, but it was returned unpaid on September 25 due to insufficient funds. As a result, customs suspended all services to the company.

On February 4, 2024, customs officially ordered the company to pay MVR 20,720,412.54 within five days. However, no payment was made. The same demand was reiterated again later.

After the company failed to respond or appear in court, the Civil Court delivered a judgment in absentia on Thursday, ordering SGM Pvt Ltd to pay the outstanding amount within 14 days.

The court emphasized that the defendant had not issued any response to the charges, nor had it contested the allegations in court.