High Court has has ordered that the government wrongfully voided the K. Dhiffushi agreement which was leased for 50 years to build a resort, with the High Court ruling it should be handed back.

Dhiffushi was leased to businessman Hamid Ismail in 2015 for 50 years in exchange for the K. Kaashidhuffaru lagoon he received under a Deed of Assignment previously.

Hamid's lawyers filed a case regarding the government voiding the Dhiffushi agreement in 2017, with the Civil Court at the time determining that the agreement was voided correctly. 

When the case was appealed by Hamid's legal team, the High Court's sentence on Thursday reads that as previous agreements were voided under the 2015 agreement, there was no notice given to void the agreement in reference to the previous agreements. The sentence states the agreement still stands.

The ruling further states that although the government transferred the land to another party in 2018 after issuing a notice to terminate the agreement, Hamid's agreement remained valid. It adds that, as Hamid had incurred expenses on the land, the government's failure to return the land could increase the compensation it owes him.

The majority ruling by two judges therefore invalidates the notice to terminate the agreement, affirming that Hamid's agreement remains in force.

Judges Hassan Shafeeu, Abdulla Jameel Moosa and Mohamed Shaneez Abdulla presided over the case. The Chief Judge on the bench is Judge Shafeeu.

Judge Shafeeu's ruling in the case is that the Civil Court's sentence was correct.