Mihaaru has discerned that Tata Housing Development Company of India has the opportunity to go for arbitration if a peaceful resolution cannot be achieved over the termination of the agreement awarding development of flats in two land plots of capital Male to the company.
Former President Mohamed Nasheed’s regime had awarded development of 280 flats under the social housing program in the land plots of the former Gaakoshi and Arabiyya School to Tata Housing. In exchange, the then government had also awarded two other land plots, the former Odion Cinema and Naadhee, for Tata Housing to develop and sell luxury flats.
As an exchange for these projects, the then government had also awarded Lhaviyani atoll Lhossafulhi island to Tata for resort development. However, all of these projects have been nullified as a consequence of the current government’s decision to terminate the contract with Tata.
Government has informed Tata of the termination. However, according to Mihaaru’s sources, a five-day period must be granted for both parties to reach a peaceful solution. If both sides cannot agree on a solution, the matter could be filed at the Arbitration Centre of Mumbai as per the agreement.
Mihaaru has found out that the Maldives’ government is hoping to resolve the issue without having to face trials while Tata is looking to renew the agreement.
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Source URL: Mihaaru-News