Civil Court has ordered to halt the sale of Eriyadhoo Island Resort on Sunday.
State Bank of India (SBI) announced the sale of the resort last week over an issue of accumulated unpaid debt from Crystal Lagoon Resort Company. The company had mortgaged the resort in 2006 and 2008 for two loans. Unpaid sum amounts to 20 million Rufiyaa and USD 2.8 million (43 million Rufiyaa). Civil Court had given permission to SBI in 2015 to sell the resort if Crystal Lagoon Resort Company does not pay back the burrowed money.
SBI announced last week to sell the resort on a bidding basis. The starting amount for the bidding is at USD 28 million (431 million Rufiyaa).
However, Civil Court issued a stay order on Sunday when, Platinum Capital Holdings, one of the guarantors on the loan had submitted a new case to the court relating the issue.
Civil Court said they had enough evidence to issue a temporary halt notice and therefore until the case was completed or informed otherwise, the sale of the resort should be halted.
Platinum Capital Holdings had requested to comply with a verdict High Court had made previously that allows them to sell mortgaged property as they dictate.