HDC withdraws lawsuit against FAM as talks continue

The Civil Court has dismissed a lawsuit filed by the Housing Development Corporation (HDC) against the Football Association of Maldives (FAM) over a plot of land in Hulhumalé after HDC requested to withdraw the case.

The case concerned a 23,000-square-foot plot in Hulhumalé (Lot No. D 01-5), which was allocated to FAM under an agreement signed with HDC on 11 July 2018 for the development and operation of a football training facility.

HDC terminated the agreement on 17 September 2024, stating that FAM had failed to pay rent from 2023 onwards and had not developed the facility as required under the agreement.

After FAM did not vacate the land following the termination notice and continued using the property without paying rent, HDC filed a case in the Civil Court on 14 April 2025.

In its claim, HDC asked the court to order FAM to pay all outstanding rent and accrued penalties up to the date the land is returned, and to hold FAM liable for losses arising from the alleged breach of contract.

In its ruling issued on Thursday, the Civil Court noted that both parties had been given several opportunities to resolve the dispute outside court.

The court said HDC had requested the withdrawal of the case because negotiations with FAM were ongoing.

According to the ruling, HDC withdrew the claim on the understanding that it may file a new case if the negotiations do not result in a settlement. FAM did not object to the withdrawal.

The land has also been the subject of allegations relating to the sublease of plots to third parties.

A special audit by the Auditor General's Office found that FAM began subleasing portions of the land on 14 December 2021. According to the audit, 15 individuals entered into sublease agreements before the main lease was terminated.

The audit stated that FAM received MVR 52.2 million in revenue from the subleases during that period.