Case seeking MVR 1.1mn in unpaid lease from Newport dropped at state’s request

The Civil Court has dismissed the enforcement case to recover over MVR 1 million in outstanding land lease payments from Strada for Newport View, a restaurant the company operated in the Lozuziyaaraih Kolhu of Male’ City, at the request of the state.

Strada and Planning Ministry had signed a lease agreement to develop a food outlet, bridge viewing platform, and a futsal field in the prime location on September 22, 2016 – during former President Abdulla Yameen Abdul Gayoom’s administration.

However, the lease agreement was terminated on March 7, 2019, during former President Ibrahim Mohamed Solih’s administration, citing breach of contract over failure to pay lease and fines.

But when Strada failed to vacate the premises as ordered, the state lodging a lawsuit against the company with the Civil Court.

The court ruled against Strada on September 26, 2019, ordering the company to vacate the premises, and pay MVR 1.15 million in accrued lease payments and fines within 30 days.

Strada had failed in its attempts to challenge the order at both the High Court and the Supreme Court.

While Strada vacated the premises by the deadline, it failed to pay the outstanding lease. This prompting the Civil Court to initiate an enforcement case.

But the case was dismissed by the Civil Court on Sunday, at the request of the Attorney General’s Office.

According to court documents, the decision came after the AGO filed a letter stating they wish to revise the case.

Strada had been headed by Zahid Rameez, who had served as a senate member of the then-ruling Progressive Party of Maldives (PPM). But he stepped down from the company’s board after the PPM lost the 2018 presidential election.