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Sand being transported to Lagoon 9.

Indian company accused of illegal sand sale, equipment rental

MM Exports was selling sand for the reclamation of a lagoon named 'Lagoon 19' near Baros Island Resort.

29 October 2022
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MM Exports of India, which has been entrusted with the construction of roads in Hulhumale Phase II, has been involved in illegal sale of sand from major sand dunes in the area and the rental of duty-free imported equipment and materials for commercial projects.

A reliable source told Atoll Times that MM Exports had been selling sand for the reclamation of a lagoon named 'Lagoon 19' near Baros Island Resort. The lagoon had been leased to a foreign company for resort development.

In addition to illegal sale of sand, the unnamed source said that MM Exports' barges and tugboats are also being used for the construction of a resort on Vaagali island, which had been leased to develop the resort.

According to the source:

  • Sand is being transported to 'Lagoon 19' on barges and tugboats imported for the construction of Hulhumale Phase II roads; excavators and vehicles brought for a particular project cannot be used for any other purpose under the Customs regulations

  • HDC had earlier said that the sand dunes in Phase II were given to India's Afcons Infrastructure, which is constructing the Thillamale Bridge; it is believed that MM Exports sells sand to others wearing under Afcons' name

  • Environment Protection Agency (EPA) permission is needed to transport sand from one place to another in this manner, but no such permission has been obtained

  • Barges and tugboats used to develop Vaagali island do not have the licence to carry goods from one island to another

"These people [are doing these things] in violation of transport regulations, customs rules, foreign investment rules of the economic ministry, as well as EPA regulations," the source said.

The source expressed concern that not much progress has been made so far by filing complaints with various government agencies. The source alleged that when a foreign company is indulging in illegal activities in such a blatant manner, no action has been taken as it has benefitted particular parties.

The source said a complaint had been lodged with the EPA on October 3 regarding illegal sale of sand.

When asked about the matter, EPA Director General Ibrahim Nayeem confirmed that a complaint had been received. An investigation is underway, he added.

Afcons and other agencies did not immediately respond to requests for comment.

MM Exports has been awarded some of the major projects awarded by the government to India's Afcons on a sub-contract basis. This includes some work on the Thilamale Bridge and the construction of roads in Addu.

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