HDC to terminate contract for JAAH's unfinished flats

Housing Development Corporation (HDC) has issued a legal notice to terminate its contract with JAAH Investment Pvt. Ltd. for failing to complete the development of The Gardens flats in Hulhumale.

The contract for the project, awarded to JAAH in 2017, remains incomplete despite several extensions granted by HDC. The Gardens project, affiliated with Jausa Construction, has faced prolonged delays, prompting HDC to initiate legal proceedings.

In a statement released on Monday, HDC confirmed the decision by its board of directors to issue the legal notice.

“JAAH Investment Pvt. Ltd. has not completed the project to date. As such, the board of directors has decided to send a legal notice on 27 January 2025 as the final stage before termination of the agreement,” the statement read.

HDC has provided JAAH with a 45-day deadline to complete the unfinished work. If the deadline is not met, the contract will be terminated, and the project will be taken over by HDC.

The decision to take legal action against JAAH is aimed at ensuring that the apartments are delivered to buyers who have already paid for them.

HDC has also announced that the remaining work on The Gardens flats will begin in October 2023 under its direct supervision.