Committee reports MVR 1.4 billion in unpaid dues to HDC
The total amount unpaid to HDC includes MVR 193 million from parties granted relief due to financial constraints.
The Housing Development Corporation (HDC) is owed MVR 1.4 billion by private parties, according to a report compiled by the Parliament’s Finance Committee.
The report, prepared following the collection of information from HDC, outlines outstanding rent and penalty payments from over 30 companies that have leased land and buildings in Hulhumalé and Thilafushi. The Finance Committee passed the report during a meeting held Wednesday.
A summary of the report, shared with members ahead of the vote, states that the total amount unpaid to HDC includes MVR 193 million from parties granted relief due to financial constraints. An additional MVR 28.1 million has been collected from parties that had received concessions.
The report notes that many of the debtors are companies that were allocated flat buildings in Hulhumalé.
HDC has reportedly taken several actions to address non-payment issues, including:
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Termination of lease agreements on 64 plots of land due to non-payment
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Repossession of 16 plots for HDC’s own use
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Termination of lease agreements without further leasing on 28 plots
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Continued temporary use of 12 plots
The committee’s report also includes several recommendations for HDC to strengthen its leasing practices and financial recovery mechanisms. Key recommendations include:
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Developing a formal procedure for recovering outstanding amounts related to leased land and buildings, to be submitted to the committee within 30 days
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Assessing and seizing assets on plots with unpaid rent, and initiating recovery action
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Verifying that bidders for HDC land allocations have no pending dues
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Refraining from allocating land under Corporate Social Responsibility (CSR) schemes without conducting feasibility studies to determine public and corporate benefit
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Establishing and enforcing a standardised policy for rent relief in cases of financial hardship
In October 2024, HDC had stated its intention to publish a list of companies with outstanding payments. The corporation had also urged non-paying parties to settle their dues by November 2024.
