Court backs HDC in terminating SeaLife agreement

The Civil Court has ruled that the Housing Development Corporation (HDC) acted lawfully in canceling its agreement with SeaLife Global to build 3,000 apartment units in Hulhumale.

The agreement, originally signed in March 2014 during the administration of former President Abdulla Yameen, was terminated in December 2018 under the government of former President Ibrahim Mohamed Solih.

SeaLife filed a case in the Hulhumale Division of the Civil Court, seeking damages for the cancellation. However, the court’s ruling on Sunday confirmed that HDC’s decision to terminate the contract was justified and did not warrant any compensation to SeaLife.

Following the court’s decision, HDC released a statement reaffirming its commitment to upholding agreements related to development projects in Hulhumale.

“In addition to the SeaLife project, the corporation will take legal action against those who violate the agreements of various such projects in Hulhumale,” the statement read.

HDC also announced the termination of its agreement with JAAH Investment for the completion of ‘The Gardens’ flats in Hulhumale. After multiple notices were issued to the company, HDC has now decided to seize the property.