HDC withdraws lawsuit against Sealife seeking to recover MVR 49M

Housing Development Corporation (HDC) has withdrawn the lawsuit it filed against SeaLife Global Private Limited seeking MVR 49 million paid by the company as compensation of tenants who had paid advance payments for SeaLife’s housing project in Hulhumale’ – which was never completed.

SeaLife announced its 3,000-apartment housing project, the SeaLife Complex in Hulhumale’, back in 2015. Although tenant were charged an advance payment, the SeaLife Complex was never built.

203 tenants sued SeaLife and HDC to recover the advance payment. Although SeaLife agreed to reimburse the payment, they never did so.

Subsequently, HDC reached a settlement agreement with tenants who filed the lawsuit and paid MVR 46 million to 368 tenants. 23 tenants are still owed MVR 2.3 million, accounting for booking fee and downpayment paid for SeaLife apartments.

HDC filed a lawsuit against SeaLife on April 27, 2021, seeking to MVR 49 million in total inclusive of the sum paid by HDC as compensation for the tenants in addition to MVR 400,000 incurred for the related-administrative works.

SeaLife did not respond to the lawsuit.

HDC filed a letter with the Civil Court on January 22^nd requesting to withdraw the case.

As such, Civil Court, on Tuesday, has dismissed the case.

HDC and Sea Life Global entered into an agreement, with the latter contracted to deliver fully developed apartment units at Hulhumale'. Later, HDC terminated the contract citing breach of contractual obligations by Sea Life.

The parties entered into the agreement on March 13, 2014, for the development of 3,000 apartment units. 

Sea Life Global however did not go ahead with the project despite acquiring monies from multiple different parties - specifically through pre-sale of the apartments to buyers.

HDC terminated its contract with Sea Life on December 24, 2018.

Former HDC Managing Director, Ibrahim Fazul Rasheed had previously in March last year, confirmed the claimants had received flats from either Hiyaa social housing or Vinares towers. The claimants reportedly received 60 of unassigned Hiyaa flats and 130 Vinares flats earmarked for them.

Sea Life Global's Managing Director Ahmed Moosa Mohamed faces 42 charges in the graft, and could be looking at a 65-jail-term if convicted.