Civil Court has ordered today for the island of Dholhiyadhoo in Shaviyani atoll to be sold following failure to repay a loan taken from State Bank of India.
Civil Court has ordered today for the island of Dholhiyadhoo in Shaviyani atoll to be sold following failure to repay a loan taken from State Bank of India.
The court's ruling states that as of August 12, there are unpaid loans of Dholhiyadhoo Investment Pvt Ltd from 2014 worth USD 13.4 million and 149.3 million.
Bank of Maldives (BML), as well as Bank of Ceylon (BOC), have intervened in the case. They did so as loans have been taken and remain due to both these banks as well for the development of Dholhiyadhoo Resort. Both BML and BOC have also previously announced the sale of the island.
Dholhiyadhoo has almost reached completion in development as a resort, however remains closed. The island, developed as a five star resort, has 100 rooms, 65 of which are water villas.
As the loan remains unpaid, the bank has asked for authorization to sell Dholhiyadhoo Island Resort, which was placed as mortgage.
Former MP for Bilehdhoo Ahmed Hamza and former government's Minister at the President's Office Ali Shiyam hold shares at Dholhiyadhoo Investment Pvt Ltd.
The Civil Court's ruling says that based on negotiations between the claimant and the defendant, the lowest price the island can be sold at is USD 15 million (MVR 231 million). Besides the SBI loan, the island has been mortgaged in some loans taken from BML and BOC as well.
The three banks have agreed to enter discussions and come to an agreement on how to divide the funds received from the sale of the island between them.
Civil Court granted permission to sell the island within 45 days, and for SBI to inform them of within 10 days of how much was received, how the funds were split, and whether the funds covered the repayment of the full debt.
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