Business Legal

Former Kalhufahalafushi development firm to pay fines of USD22 mln


Thaa Atoll Kalhufahalafushi – FILE PHOTO: MIHAARU

The Civil Court on Sunday ordered Asia Resorts, the former development company of Kalhufahalafushi in Thaa Atoll, to pay the state USD 22 Million in fines for default of payment in the island’s rent.

The court issued a verdict after Maldives Inland Revenue Authority (MIRA) sued Asia Resorts to recover the rent and accumulated fines for default in payments as per the lease agreement from 2009 to February 2015.

The court’s verdict stated that Asia Resorts had to settle the payment of USD22 million within three months of the verdict.

Kalhufahalafushi was handed over to Asia Resorts for resort development in May 2005. However, in 2015, the agreement was annulled after the company failed to settle the rent amounting to USD 11 million. The project was then handed over to a Chinese company, China Engineering and Machinery Corporation (CMS), for resort development.

Full details are available at the link below:

Source URL: Mihaaru-News

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