Land from Villimalé was given to the Redwave company in accordance with lease regulations, the Malé City Council has said.
The statement came as a response to Villimalé councillor Nahula Ali's allegation that a plot of land was given to the company without involving her in the decision. She said that she was not informed of the terms of the agreement and that she should be made aware of them as the councillor representing the constituency.
The council said in a statement on Saturday that Redwave was allocated the land after announcing last year that it would establish a commercial building in Villimalé to provide easy access to services for the constituents.
The council maintained that due procedure was followed by making announcements and opening for bids.
It said that land for the commercial building was unanimously allocated after several discussions at the council meeting. Nahula was also present at these meetings and voted in favour of the decision, the council alleged.
Nahula said that after she was removed from the Progressive Party of Maldives (PPM), she was removed from the post of chairman of the Villimalé Committee of the city council in violation of the rules.
Malé City Council has a majority of PPM members. The owner of the Redwave company, Eydhafushi MP Ahmed Saleem, is the PPM parliamentary group leader.