The Supreme Court Registrar has decided not to accept a constitutional case submitted seeking to declare the agreement with UAE company Eagle Hills to develop a marina and waterfront on 500 hectares of reclaimed land in Rasmale' unlawful and to void it.
Former Kendhoo MP and lawyer Ali Hussain submitted the case seeking to have the granting of land to Eagle Hills for 99 years unlawful. The Supreme Court's Registrar rejected the case, stating a case of the nature cannot be brought straight to the Supreme Court in the first stage.
As per the Judicature Act, cases that can be submitted to the Supreme Court in the first stage include those concerning matters which may present a constitutional void, discrepancies in interpretation of the Constitution between two powers of the State, or constitutional cases concerning public interest.
The registrar's decision can be forwarded for review by the judges' council.
When submitting the case, Hussain said that the case is a constitutional case concerning public interest as it is in regards to the commercial terms agreement signed by the Infrastructure Ministry on behalf of the government with Eagle Hills.
While the government is yet to disclose complete details of the agreement, they have revealed that 500 hectares of reclaimed land from Rasmale' will be given to Eagle Hills for 99 years without an upfront acquisition cost, Hussain noted.
He further said that the company has been granted the option of offering rolling lease interest on facilities developed on the land.
Hussain stated that while Article 250 of the Constitution states that any transfer, lease, sale, mortgage or release of any property or assets owned by the State shall be entered into in accordance with the law, there is no law that allows the government to issues a land to a foreign party for 99 years.
He then stated that while Article 251 of the Constitution states that a foreign party shall not receive lease of, or be given in any other way, any part of the territory of Maldives for a period exceeding 99 years, the Eagle Hills agreement allows the property to be transferred to third parties, with the 99 year lease renewing with every transfer. He said that this paves the path for granting land rights in Maldives to foreign parties.
Hussain stated that the agreement directly contravenes Article 250 and 251 of the Constitution, and appealed to the Supreme Court to declare it void ab initio.
Hussain also sought an injunction to halt acting on the agreement until the Supreme Court rules in the case.
He stated that he is seeking the injunction to prevent the formation of the rights of a third party, and to protect the State from irredeemable loss and difficulty in enforcing the ruling.
While opposition parties are critical of the Rasmale' project, the government has announced that Eagle Hills will develop 5,000 housing units, worth approximately USD 500 million, in Hulhumale' before the project itself commences.
The government also stated that proceeds from property sales under the project will be deposited in an escrow account under the government, which will bring a resolution to the dollar crisis in the country, and contribute towards strengthening the official reserves.
Further, the government assured that no duty or tax concessions will be granted under the project.
