Fenaka ordered to pay MVR 28 million in 11 months
Dimah Pvt Ltd had initially sought MVR 31 million from Fenaka for services and goods provided.
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Civil Court on Monday ruled that Fenaka Corporation must pay MVR 28 million to Dimah Pvt Ltd after failing to settle an agreed-upon payment for services rendered in 2022.
Dimah Pvt Ltd had initially sought MVR 31 million from Fenaka for services and goods provided. However, after repeated requests for payment went unanswered, the company took the matter to court in May last year.
Fenaka, in response, requested 14 days to resolve the issue outside of court. At the end of the period, the corporation made a partial payment of MVR 3 million but failed to settle the remaining balance. Consequently, Dimah pursued the case again.
Following a review of the case, the Civil Court ordered Fenaka to clear the outstanding MVR 28 million within 11 months. The ruling stipulates that the company must pay a minimum of MVR 2.5 million per month.
Fenaka’s financial difficulties have been a growing concern, with the corporation’s total debt reaching approximately MVR 4 billion. Due to these financial constraints, discussions were held about transferring Fenaka’s management to the State Trading Organization (STO). However, this decision was later reversed.
In a separate case, the Civil Court had earlier ordered the company to settle an outstanding debt of MVR 7.9 million within 15 days.
Amid these financial challenges, President Mohamed Muizzu recently assured that government-owned corporations like Fenaka and the Road Development Corporation (RDC) would clear the majority of their dues to private companies before Ramadan.
