HDC withdraws compensation lawsuit against SeaLife over flats
Hundreds of individuals had paid MVR 50,000 each as a booking fee for apartments promised under the SeaLife housing scheme.
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The Housing Development Corporation (HDC) has withdrawn its civil lawsuit filed against SeaLife Global, which sought MVR 49.4 million in compensation related to a failed housing project launched in 2014.
The Civil Court confirmed that the case was dismissed on Thursday following a formal request by HDC. The Corporation had earlier filed the suit seeking to recover funds under a settlement agreement and for administrative expenses related to the stalled housing project.
According to HDC, hundreds of individuals had paid MVR 50,000 each as a booking fee for apartments promised under the SeaLife housing scheme. In addition to booking fees, several buyers had made varying amounts in down payments. Despite the payments, no construction work began, and the project was ultimately discontinued.
In the civil suit, HDC had sought:
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MVR 46.7 million from SeaLife under the terms of a settlement agreement with affected buyers;
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MVR 2.2 million for 23 individuals who had not yet received compensation;
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MVR 419,705 to cover administrative costs incurred by HDC in managing the aftermath of the transaction.
The Civil Court dismissed the case following HDC’s request to withdraw it, originally submitted on 22 January 2023, with the provision that the Corporation reserves the right to refile the case in future. SeaLife has not yet submitted a response to the court regarding the withdrawal.
HDC has so far provided compensation to 368 individuals affected by the failed project. Of these:
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203 buyers filed separate claims seeking damages;
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192 of these claims were settled out of court with HDC providing compensation;
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The remaining individuals who did not pursue legal action but submitted information to HDC were also compensated. A total of 176 such individuals have received payment.
The SeaLife housing project, announced in 2014, remains inactive, and HDC’s efforts to recover costs from the developer continue outside court proceedings.
