Flat owner fined MVR 50,000 for labour quarter rental

The owner of a flat at Amaan Udhares, developed by the Fahi Dhiriulhun Corporation (FDC) in Hulhumalé Phase 2, has been fined MVR 50,000 for renting the unit as accommodation for foreign workers.

The flat was allocated under a government social housing scheme, under which ownership is granted on a rent-to-own basis. The flat allocation agreement prohibits subletting or renting the unit to others before the full purchase price has been paid and ownership transferred. The agreement also allows for confiscation of the flat in the event of violations.

Despite these conditions, cases have been reported in which such flats are being rented out at higher rates, contrary to the purpose of the housing schemes. While the monthly rent payable to FDC is MVR 8,000, some flats are being rented out for around MVR 25,000 per month.

FDC said it received reports earlier this month that two three-bedroom flats at Amaan Udhares had been rented to Nepali nationals and used as labour quarters. Following the reports, the occupants were fined and instructed to vacate the premises within 10 days. FDC said the flat is now occupied only by the owner.

FDC also said it is verifying information that Amaan Udhares flats, for which the monthly rent is MVR 9,000, are being rented to third parties for amounts exceeding MVR 25,000.

The Housing Development Corporation (HDC) has previously stated that flats allocated under government social housing programmes are intended for individuals with the greatest need.

Housing Minister Abdulla Muththalib has also said that action would be taken against beneficiaries who rent out such flats. However, several units are reported to be rented out, with no enforcement action taken in many cases to date.