HDC recovers MVR 226 million in outstanding lease payments

The Housing Development Corporation (HDC) has recovered MVR 226 million out of MVR 1.4 billion in outstanding land lease payments, says Ibrahim Fazul Rasheed, the corporation’s managing director.

In a meeting with the Parliament’s Public Accounts Committee on Wednesday, Fazul said that various businesses owed the HDC a steep MVR 1.4 billion in lease payments when he took over the management of the corporation last year.

Fazul said he directed the formation of a special committee to look into multiple such issues facing the corporation.

“We initially had MVR 1.4 billion in outstanding lease payments owed to us. But through the efforts of the recovery committee, we have now recovered MVR 226 million,” he said.

This still leaves a staggering MVR 1.2 billion in outstanding lease payments it needs to recover.

Fazul said that the HDC is sending demand letters warning legal action against the businesses that owe lease payments to the corporation.

He said that the HDC is open to making flexible repayment schedules with businesses, but will take business that refuse to settle payments to court.

“They have the opportunity to reach an agreement with us for a mutually convenient repayment schedule where they can clear it in installments. We are allowing this chance to avoid going to the court,” he said.

The members of the Public Accounts Committee had expressed displeasure over HDC’s failure to recover outstanding payments last week. In a meeting on Monday, Baarah MP Ibrahim Shujau said that the HDC is owed MVR 1.2 billion in lease payments and another MVR 195 million for terminated contracts. He said the total outstanding payments owed to HDC tops MVR 2.2 billion.