Audit finds Hulhumale' land under Binveriyaa caused up to MVR 15.9bn loss to HDC

The Housing Development Corporation (HDC) has suffered an estimated loss between MVR 14.85 billion and MVR 15.93 billion due to the allocation of free land in Hulhumale' Phase II and Phase III under the Binveriyaa scheme, according to a special audit released on Thursday.

The Auditor General’s Office (AG Office) conducted the audit to assess the financial impact on HDC from land allocated under the Binveriyaa scheme implemented during former President Ibrahim Mohamed Solih’s administration.

According to the report, 2,841,400 sqft of land was designated from HDC‑owned Hulhumale' Phase II and Phase III for the scheme. The audit estimates that if the land had been sold through a competitive market route, HDC would have earned between MVR 14.8 billion and MVR 15.9 billion.

In Phase II, 188 plots allocated to 473 people were classified as beachside‑equivalent plots. The land area totals 347,600 sqft, with an estimated market value of MVR 2.5 billion.

Financial Loss Incurred by the Housing Development Corporation from Land Allocations under the Binveriya Valuation from Hulhumalehttps://t.co/5nfr2mssjL pic.twitter.com/1mlJOvVtMD

— AGO (@AuditMV) May 14, 2026

An additional 521 plots were allocated to 1,166 people from Phase II, covering 909,250 sqft of land valued at MVR 4.9 billion.

Under the Binveriyaa scheme, land was also allocated from Phase III. The government allocated 644 plots to 2,481 people, totalling 1,584,550 sqft. The audit estimates that HDC would have received MVR 8.4 billion if this land had been sold, not MVR 84 billion as mistakenly circulated elsewhere.

In total, 4,120 people received land at no cost. The audit notes that the state budget will have to compensate HDC for the loss incurred.

Based on the valuation, the state effectively spent MVR 3.8 million per beneficiary, an amount the audit says is 70 percent higher than the cost of a flat in the Hiyaa project.

HDC filed a complaint with the police in March last year regarding the matter.