Sale of land from Hulhumale’ for MVR 400K: ‘Resolution to a 23-year long case, will file ACC case’

Housing Ministry has clarified that the decision to sell a land plot to an individual for approximately MVR 400,000 was made as a resolution to a 23-year-old grievance, adding that, nevertheless, to ensure transparency and verify that no procedural errors occurred, it has decided to submit the matter to the Anti-Corruption Commission (ACC) for review.

In an official statement, the Ministry explained that the internal memo circulating on social media pertains to the case of Ahmed Zahir, who was originally allocated a plot in Hulhumalé Phase 1 under the "Sale of 56 Residential Plots" scheme conducted by the then Ministry of Home Affairs, Housing, and Environment on December 22, 2003.

Official records indicate that the plot initially designated for the individual measured 904 square feet, valued at MVR 339,000. The Ministry noted that despite repeatedly seeking the handover of the plot through various administrations over the past 23 years, the land had remained unassigned until now.

The Housing Ministry highlighted that the current administration decided to resolve this long-standing issue based on the individual's living circumstances and in accordance with the commercial principles agreed upon 23 years ago.

The Ministry further detailed that the plot currently being sold to Ahmed Zahir was previously allocated under the former government’s ‘Binveriya Scheme’ but had become vacant after the agreement was terminated due to the initial recipient's ineligibility. The sale was finalized on the condition that Zahir relinquishes all rights to the plot he had received from Gulhifalhu under the same ‘Binveriya Scheme’.

Acknowledging that housing is a sensitive issue of significant public concern, the Ministry stated it has proactively decided to refer the matter to the ACC to determine if any regulations were breached in the decision-making process. The Ministry emphasized that the formal land handover agreement will only be signed after receiving legal counsel and a response from the ACC.

Given the high value of land in the Greater Malé area, where plots exceeding 1,000 square feet typically command prices in the millions, this transaction has sparked public debate. Currently, commercial apartments and even social housing units are valued at over MVR 2 million.

While the low-priced sale of this Hulhumalé plot has caused public unease, many legal experts and citizens argue that such administrative remedies and compensations should be determined through judicial processes. This sentiment was echoed by former Supreme Court Justice Husnu Al Suood, who pointed out the need for legal oversight in such matters.