HDC terminates Riveli Restaurant lease over unpaid rent
Despite the announcement, Riveli Restaurant remained open and continued serving customers on Tuesday.
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Housing Development Corporation (HDC) has terminated the land lease agreement for Riveli Beach Club and Restaurant in Hulhumalé, citing prolonged non-payment of rent, and announced its decision to reclaim the property.
HDC issued a statement on Monday evening confirming that it had terminated the agreement with Solaris Hospitality Private Limited, which operates the restaurant on Lot 10877 in the Ruggandu 1 area of Hulhumalé.
The corporation said the termination took effect on Monday, 2 November, and that the land would be brought back under its control.
Despite the announcement, Riveli Restaurant remained open and continued serving customers on Tuesday.
According to available information, rent for the property has remained unpaid for several years.
In its statement, HDC said Solaris Hospitality Private Limited was no longer authorised to conduct business or provide services on the premises following the termination of the lease.
"As a decision has been made to reclaim the land with effect from today [Monday], Solaris Hospitality Private Limited is not permitted to conduct any business activities or provide any services on Hulhumalé Lot No. 10877," HDC said.
The plot is located opposite the beach in the Ruggandu 1 area of Hulhumalé and was leased for the operation of Riveli Restaurant.
HDC said the decision to terminate the agreement followed an extended period of unpaid rent.
The corporation stated that it had issued all notices required under the lease agreement and provided the operator with several opportunities to settle the outstanding payments.
According to HDC, the agreement was terminated in accordance with the procedures stipulated in the contract after the operator failed to meet its payment obligations.
HDC said such decisions were taken only after businesses established in Hulhumalé to provide services to the public had been given sufficient opportunities to fulfil their contractual obligations.
The corporation did not disclose the total amount of outstanding rent or specify how long the payments had remained overdue.
The statement also did not indicate when HDC intended to take physical possession of the property.
