MVR 100K slashed from Hiya rent to fulfil electoral pledge

Urbanco announced on Wednesday that it has waived an additional MVR 100,000 from Hiyaa flat rents from this day forward in order to fulfil President Dr Mohammed Muizzu's campaign promise to return the MVR 200,000 spent by those who received the flats for the finishing of Hiyaa flats.

To meet the remaining MVR 100,000, the Cabinet on Tuesday reduced the rent of Hiyaa flats to MVR 3,984.21 for the next seven years.

Urbanco, the parent company of the Hiyaa flats, held a press conference at the office on Wednesday to elaborate on the decision of the Cabinet.

The company's Managing Director Ibrahim Fazul told the press conference that the cabinet's decision will give a discount of about MVR 200,000. Thus:

"There is some misleading information [for the public] around. However, following Tuesday's decision, each flat in the Hiyaa [monthly rent] is MVR 3,984.21 for the next seven years. " Fazul said.

After the cabinet's decision, MVR 200,000 was waived off from the value of the Hiyaa flat, valued originally at MVR 2.5 million, he said.

"Then the question is that this amount [MVR 200,000] is not met. [The remaining] MVR 100,000 is being talked about differently in various sources. That MVR 100,000 is being completely waived from Wednesday," Fazul said in announcing the decision.

The current rate of MVR 5,300 paid for seven years would mean a total of MVR 445,200. At the current rate of MVR 3,984.21, the rent cut stands at MVR 334,673.

As a result, MVR 110,526 of the rent that was due in seven years is waived. In addition, the total reduction amounts to MVR 210,526 with the 100,000 waived on Wednesday.

Fazul said on Wednesday that there was no financial burden on the company even if the amount is waived.