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K. Fushidhiggaru: Two vessels run aground the island's outer reef

Govt takes Indian company to court over MVR 100m environmental fine

EPA's decision was challenged by the vessel owners with the minister.

15 May 2023

The government has filed a case against Mainland Shipping Pvt Ltd for failing to pay a penalty of MVR 100 million for the damage caused by two vessels that ran aground on the K. Fushidhiggaru reef seven years ago.

In March, environment Mmnister Aminath Shauna rejected an appeal and asked the company to pay the MVR 100 million fine within 15 days for the damage caused to Fushidhiggaru reef. 

Director General Ibrahim Naeem at the Environmental Protection Agency (EPA) told Atoll Times on Sunday that he had approached the Attorney General's (AG) office late last year seeking prosecution of the company for failing to pay the fine even after the expiry of the deadline.

Fathimath Haleem, media officer at the AG's office, told Atoll Times that the case was filed in the Civil Court on December 28.

The court has now asked the defendant to respond to the charge sheet, she said.

In the case of the barge and the tug boat running aground in Fushidhiggaru:

  • The vessels that ran aground were Mutha Royal tugboat and Mutha Grace barge 

  • The barge was dislodged on March 23, 2016, and the tug boat was salvaged on March 10, 2017

  • This caused extensive damage to 4,370 square metres of reef, according to an EPA survey

  • On March 14, 2018, the EPA directed Mainland Shipping, which acted as the country agent of the vessels, to pay MVR 100 million as fine in the case

  • EPA's decision was challenged by the vessel owners with the minister

  • After a long time, Shauna concluded EPA’s decision was correct and asked to pay the fine in March 2022

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