High Court stays Civil Court trial over revoked flat allocation

The High Court has issued an interim order staying Civil Court proceedings in a case filed against the government over the revocation of a flat allocated under the previous administration's Gedhoruveriya housing scheme.

The case was filed against the Ministry of Housing, Land and Urban Development and Fahi Dhiriulhun Corporation (FDC) by an individual who had been allocated a three-bedroom apartment in Tower 11 of FDC's Uhares housing project.

According to the claim filed in the Civil Court, the plaintiff met the eligibility requirements under the Gedhoruveriya scheme and had signed a flat agreement during the previous administration.

The claim states that following the change of government, the allocation list was reviewed and the handover of the apartment was suspended. The plaintiff was later informed in writing on 9 July 2025 that the allocation had been cancelled.

The plaintiff asked the Civil Court to declare the flat agreement valid, recognise the plaintiff's legal right to the apartment, order FDC to hand over the flat without delay, prevent the Housing Ministry from obstructing the transfer, and rule that the agreement could only be invalidated by a court.

In its response, the Housing Ministry argued that although the plaintiff had initially been allocated a flat, a subsequent review found the applicant to be ineligible because housing had already been received under another government housing programme.

The ministry argued that the appropriate legal remedy was a judicial review of the administrative decision rather than an ordinary civil claim.

The Housing Ministry and FDC also challenged the Civil Court's jurisdiction, arguing that the case had been filed under the wrong legal procedure.

In April, the Civil Court dismissed those procedural objections and ruled that the case should proceed, stating that the issues raised could only be determined after hearing evidence and arguments from both parties.

The Housing Ministry appealed that decision to the High Court and sought an interim order suspending the trial until the appeal is decided.

In an interim order issued on Thursday, the High Court said allowing the Civil Court proceedings to continue could render the appeal ineffective.

"We hereby order that no further steps be taken and no hearings be conducted in connection with the Civil Court case until this court reaches a decision or determines otherwise," the majority of the three-judge bench stated.

The Gedhoruveriya housing scheme allocated 4,000 flats during the administration of former President Ibrahim Mohamed Solih, with agreements signed for a number of beneficiaries.

After taking office, President Dr Mohamed Muizzu's administration reviewed the allocation list and appointed a committee to reassess applicants. A revised list was later published before the government decided to proceed with the original list following public criticism.

The Housing Ministry, however, said applicants found to be ineligible would still be removed. At the time, the ministry estimated that around 700 applicants could be disqualified.

According to the latest figures released by the ministry, about 450 applications have since been cancelled because applicants either provided false information or did not meet the eligibility requirements.