Bank of Maldives (BML) has announced the sale of Th. Kalhudhiyafushi, over the issue of unsettled loans.

In the announcement, BML stated that a bid must be proposed by those interested before 12pm of October 10.

The bidding will begin at 12pm the same day. BML also says that those who wish to participate virtually can do so. Bid winners are required to make a deposit of USD 100,000. The bids of those who do not make the deposit, will be cancelled.

The island was taken by the country's national bank on 28 February 2019 after a civil court ruling.

The island was released to Huravee Investment, of which former MP for the Th. Guraidhoo constituency Hussain Manik Dhonmanik is a shareholder.

They were developing the island alongside a global hotel chain, Melià hotels. The development began in 2016 with plans of 100 rooms and 97 private villas. Construction still goes on although it was planned to be opened in 2017.

The island was announced to be sold previously during September 2019 as well, for a selling price of USD 29.5 million.

The agreement to develop the island into a tourist resort was signed with Huravee Investment during 2015, with the Tourism Ministry. It was signed by the then Vice President Ahmed Adeeb as the tourism minister’s position was vacant with all responsibilities assigned to the Vice President. This was done though the Maldives Marketing and Public Relations Corporation (MMPRC).

This incident was reported to the Anti-Corruption Commission (ACC). The report published by the ACC after probes into the MMPRC grand corruption scandal, reveals that the acquisition cost was paid by Hussain Manik Dhonmanik from funds received from SoF, the company involved in the scandal.