BOC granted permission to sell Thelu Veliga for third time

The Civil Court has, for the third time, granted permission to Bank of Ceylon to sell Drift Thelu Veliga Retreat, a resort in Alif Dhaalu atoll. 

The bank was first granted the right to sell the leasehold rights of the five-star resort in a proven debt case on March 14, 2024. The court's permit then was to sell the resort at a minimum sale price of USD 21.14 million. However, the resort could not be sold at this price. 

With this, in November, the Civil Court granted an extension of one month to the Bank of Ceylon within which to sell the resort at this same price. However, the Civil Court's ruling was appealed by the defendant at the High Court, which issued a halt on enforcement. 

High Court ruled in the case on November 30. The court ruled that there is no reason to void the Civil Court's ruling to sell the mortgaged resort. 

The Bank of Ceylon then returned to the Civil Court seeking enforcement and permission to sell the resort, this time at a minimum price of USD 9.9 million. Under the first permit issued by the Civil Court, there were offers to buy the resort at USD 9.9 million. 

However, the resort's owner has stated that they wish to appeal the High Court's ruling at the Supreme Court, and asked to not issue any ruling that may infringe on these rights. 

The Civil Court, however, decided to grant permission to sell the mortgaged resort, as per the bank's request. This time, the minimum price for bidding was set at USD 9.9 million. The resort can be sold at a price no lower than this within three months, and the proceeds are to be deposited at the court within ten days of sale. 

If the resort is not sold within this time, then the bank must notify the court, according to the ruling. 

Drift Thelu Veliga Retreat is being sold as it was mortgaged for a loan taken from Bank of Ceylon by Castaway Maldives, which failed to pay back USD 9.1 million by November last year. The loan guarantor was former Fisheries Minister Hussain Hilmy.