A constitutional case has been submitted to the Supreme Court today requesting the annulment of the agreement made by the Maldivian government to lease a plot of land exceeding 500 hectares in Rasmalé to the UAE-based company Eagle Hills for 99 years, on the grounds that the agreement is unconstitutional.

Legal counsel and former Kendhoo constituency parliamentarian Ali Hussain stated in a statement released on X that this matter, which involves the public interest, questions the constitutional validity of the "Commercial Terms Agreement" signed by the Ministry of Infrastructure on behalf of the Maldivian government with Eagle Hills.

Although the government has not disclosed the full details of the agreement, statements released by both parties indicate that an area exceeding 500 hectares of reclaimed land in Rasmalé has been decided to be given to Eagle Hills for 99 years without requiring an acquisition cost or rent.

Ali Hussain's statement noted that the company has also been granted the power to create "rolling lease interests" for third parties regarding the facilities developed on that land.

The case points out that while Article 250 of the Constitution stipulates that state property or funds may only be given, sold, leased, or disposed of to anyone in the manner specified by law, there is no legal framework empowering the government to lease state land to a foreign party for 99 years.

Furthermore, while Article 251 of the Constitution sets 99 years as the maximum duration for leasing Maldivian land to foreign parties, the lawsuit highlights that because the agreement allows continuous rights to be granted to third parties, it paves the way for foreign entities to acquire permanent land rights in the Maldives without a definitive termination date.

Consequently, since it directly violates Articles 250 and 251 of the Constitution, the Supreme Court has been asked to declare the agreement null and void ab initio.

As part of this case, Ali Hussain also requested an interim injunction to suspend the implementation of the agreement until the Supreme Court reaches a final decision.

It was stated that the interim injunction was requested to prevent the creation of third-party rights, avoid obstacles to enforcing the court's ruling, and protect the state from major, irremediable losses it might otherwise incur.

In an exclusive interview given to Mihaaru News regarding the largest foreign investment project ever undertaken in Maldivian history, Infrastructure Minister Dr. Abdulla Muththalib detailed and clarified concerns raised over claims that Eagle Hills would be able to sell properties developed under the project to whomever they wish.

Minister Muththalib stated that under this agreement, there will be no transfer of ownership or freehold.

"No property in Rasmalé can be bought, sold, or transferred between individuals without government permission. When selling any property, it must be submitted to the government. Furthermore, the government retains the discretion to review the recipient of that property and decide whether or not to grant approval," he stated.

Minister Muththalib stated that Eagle Hills can only sell properties that have been developed. The land containing a property sold with government approval is leased under a rental agreement signed with the government.

Each time a property is resold, 4 percent of its value must be paid to the government, the seller's rights are relinquished, and a new 99-year rental agreement is made directly with the buyer. Minister Muththalib noted that neither the rental period nor any rights held by the seller are inherited by the buyer through that transaction.

Additionally, he stated that even if someone purchases a property there, no right to reside in the Maldives is acquired, and the Maldivian Immigration Act will apply fully regarding visa issuance.

Under the agreement made by this government with Eagle Hills, 5,000 housing units (roughly USD 500 million or MVR 7.7 billion) will be received by the state in advance even before physical work on the project begins.

The government has stated that all funds generated from selling properties in this project will be deposited into an escrow account in the Maldives under government control, which will significantly alleviate the dollar shortage facing the country and greatly facilitate the central bank in strengthening official reserves.

It was also noted that no duty concessions or tax reliefs have been granted under the SEZ Act or Tourism Act, and this is an important decision finalized to ensure the state fully receives TGST and other applicable taxes.

These units are obtained by the state without taking any loans or providing guarantees. Furthermore, it is estimated that 10 percent of the revenue generated from selling over 8,800 properties developed there will go directly to the state, yielding USD 3 billion (MVR 47 billion) to the state as land value by the time the 10-year development is completed