Court halts transactions on Hulhumalé plot at centre of land dispute

The Civil Court has issued an interim order preventing the government from carrying out any transactions involving a plot of land in Hulhumalé Phase II that authorities had planned to sell to an individual for MVR 468,750.

The order was issued on Tuesday in a case filed by former Elections Commission President Mohamed Zahid, who is challenging the government’s decision to revoke his allocation of the plot.

The land had originally been set aside for allocation under the Binveriya housing scheme. Zahid had been awarded the plot, but the Housing Ministry cancelled his agreement in July 2023 after determining that he did not meet the scheme’s eligibility criteria because he was not born in Malé.

Zahid filed a case at the Civil Court two months after the cancellation. He also sought an interim order preventing any transaction involving the land until the court reaches a decision in the case.

The same plot later became the subject of public attention after a Housing Ministry memorandum revealed plans to sell the land to an individual named Ahmed Zahir without a public announcement.

The memorandum proposed selling the 1,250-square-foot plot for MVR 468,750, with an advance payment of MVR 50,000 and the remainder payable over five years.

In its interim order, the Civil Court noted that the central issue in Zahid’s case concerns his entitlement to the plot and the cancellation of the agreement and registration through which it had been allocated to him under a housing scheme.

The court found that issuing the interim order would require the state only to refrain from conducting transactions involving the plot while the case remains pending.

By contrast, the court said Zahid could suffer greater harm if no interim order were issued and rights over the land were transferred to another party before a judgment was delivered.

The court therefore ordered the state not to allocate or sell the plot to another person, or carry out any other transaction that could create third-party rights over the land, until further notice.

The proposed sale to Ahmed Zahir became public earlier this month after a Housing Ministry memorandum sent by its Housing Department to the Finance Department was circulated.

The Housing Ministry subsequently said the proposed sale was intended to resolve a land dispute dating back more than two decades.

According to the ministry, records show that during former President Maumoon Abdul Gayoom’s administration, the government decided in 2003 to sell Zahir a 904-square-foot plot for MVR 339,000. The ministry said the land was never handed over despite the decision.

The government later proposed selling Zahir the 1,250-square-foot Hulhumalé Phase II plot for MVR 468,750, calculated at MVR 375 per square foot. The proposed terms required an advance payment of MVR 50,000, with the balance to be paid over five years.

The ministry said the Hulhumalé plot became available after Zahid’s Binveriya allocation was cancelled over his eligibility for the scheme.

Following criticism over the proposed sale, the Housing Ministry referred the matter to the Anti-Corruption Commission (ACC). It said a final decision on the transaction would be made after receiving the commission’s findings and legal advice.

The ministry later announced that unresolved housing and land disputes would no longer be decided solely by the ministry. Such cases would instead be referred to the Civil Rights Department of the Attorney General’s Office for legal guidance and resolution.