Legal action filed against HDC over Vinares flat payment adjustments
At the time, HDC said the revised terms would also apply to buyers who had financed their flats through banks or made full lump-sum payments.
A lawsuit has been filed at the Civil Court against the Housing Development Corporation (HDC) over its failure to refund payments to an individual who purchased a Vinares apartment through a full upfront payment.
The case follows changes announced by the government in February 2024, under the ‘Week 14’ roadmap of President Mohamed Muizzu, after requests from Vinares flat owners. The measures included a reduction in the interest rate for the lease-to-own model from 9 per cent to 6 per cent, a 50 per cent reduction in the required down payment with the balance deducted from the total price, and a revision of monthly instalments to MVR 4,200 based on the new interest rate.
At the time, HDC said the revised terms would also apply to buyers who had financed their flats through banks or made full lump-sum payments. The corporation stated that it was working on a mechanism to implement refunds and price adjustments.
The claimant, who paid the full price upfront, alleges that while other flat owners have received the revised benefits, the concessions were not applied in this case.
The lawsuit seeks a declaration that withholding the revised benefits from a specific individual amounts to unlawful discrimination under the Constitution of the Maldives. It also asks the court to rule that HDC’s continued retention and use of the full payment, without applying the revised pricing, constitutes unjust enrichment. The claimant further seeks a court order recognising the excess amount paid following the price reduction as funds that must be reimbursed.
In its preliminary submission, HDC challenged the jurisdiction of the Civil Court, arguing that the case should not proceed as the claimant had not specified a monetary value in the relief sought.
However, in a jurisdictional ruling issued yesterday, the Civil Court held that it has the authority to hear the case. The court said the claim relates to the determination of legal rights rather than a specific monetary demand at this stage. The court has ordered HDC to submit a formal response within 14 days.
