HDC recovers MVR 226m from MVR 1.4b outstanding debt
HDC has formed a dedicated settlement committee tasked with recovering outstanding amounts.
Housing Development Corporation (HDC) has recovered MVR 226 million out of the staggering MVR 1.4 billion owed to the company, according to Managing Director Ibrahim Fazul Rashid.
Speaking at a session of the Parliament’s Finance Committee on Wednesday, Fazul outlined the steps HDC is taking to address the issue of unpaid rents from leased land.
The unpaid amount owed to HDC is distributed across private companies, government entities, and state-owned companies, as follows:
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Private companies: MVR 985 million
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Government entities: MVR 53 million
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State-owned companies: MVR 185 million
The issue came under scrutiny in the Finance Committee after concerns were raised last week regarding the failure of even financially robust companies to pay their dues to HDC.
To address this issue, HDC has formed a dedicated settlement committee tasked with recovering outstanding amounts. Fazul explained that the company has been actively pursuing defaulters through legal channels, including issuing legal notices to companies in arrears. Furthermore, HDC is offering companies the option to settle their debts in instalments to facilitate payment.
"HDC owes MVR 1.4 billion. This includes all institutions," Fazul said, highlighting the severity of the issue.
Members of the Finance Committee expressed alarm over the significant amount of rent owed to HDC, particularly by large private companies. The members stressed the need for stricter measures to ensure compliance and prevent such situations from recurring.
