Yacht Tours granted permission to sell Kudavilingili shares to foreign company

Ministry of Tourism, Arts and Culture has allowed the request by Yacht Tours Maldives to sell the company’s shares of the joint venture company, established by the government and Yacht Tours to develop Kaafu Kudavilingili into a tourist resort, to a foreign company.

A senior official from the Tourism Ministry said today that the request for permission to sell the 95 percent shares of Kudaviligili held by Yacht tours has been granted last week.

“The government's agreement initially stated that the company’s shares could be sold at any time. There is nothing that can be done to stop this,” the official said.

The Tourism Ministry official said that after the company had submitted the required Environment Impact Assessment (EIA) for Kudavilingili in 2010, the government had granted 36 months for Yacht Tours to develop the island, but said that the company had failed submit detailed drawings for the development plan. Yacht Tours in owned by Kaashidhoo MP Abdulla Jabir.

A senior official from the Ministry of Economic Development confirmed today that they have received a request asking for the shares of Kudavilingili to be transferred to another party. He said that the Ministry is required to seek the go-ahead from the principle tax authority, Maldives Inland Revenue Authority (MIRA), before they can grant the request.

“A circular by the Finance Ministry on 27th April 2012 states that a no-objection letter has to be obtained from MIRA before allowing the transfer of company shares. The transfer of the company’s shares will depend on the answer from MIRA,” the official from Economic Ministry said.

Sun is aware that Yacht Tours has plans to sell the 95 percent shares of Kudavilingili for $17 million to a company from India.

The government recently terminated the lease agreements for two resorts owned by Jabir’s Yacht Tours, Alif Dhaalu Kudarah and Haa Alif Alidhoo, due to the company’s failure to pay rent and subsequent fines, which had accumulated to $7 million. However, the retractions of the two properties have been halted due to an injunction by Civil Court.