MDP heads to court to nullify amendments to Decentralization Act

The main opposition Maldivian Democratic Party (MDP) has filed a case in court to nullify the amendments made to the Decentralization Act, the Act on Decentralized Administration of Administrative Divisions of the Maldives.

In the case filed on Thursday, MDP stated that the clause added as Article 70 (f) and the clauses added as Article 144-1 in the 16th Amendment to the Decentralization Act are in violation of the principle of decentralized administration of administrative divisions as stipulated in Article 230 of the Constitution.

Further, they have requested that these two articles of the amendment be declared null and void, as these articles infringe upon the right granted by the Constitution for people to govern through their elected representatives, and the right to acquire and possess property guaranteed by the Constitution. They also claim that these articles were passed in violation of Article 16 of the Constitution.

The 16th Amendment to the Decentralization Act, proposed by the government, was passed by the People's Majlis and ratified by the president on 14 August 2025, coming into effect on the same day.

In the case submitted to the Supreme Court, it is stated that the changes to the law have set rules that narrow the role and powers of local councils.

It highlights that the business activities of Local Authority Companies must meet specific conditions, limiting their scope. It states that these activities must be essential for the urban development of the island or islands, and the investment or capital amount must exceed MVR 10,000,000.

The case also mentions that businesses of Local Authority Companies that do not meet these conditions must cease operations within 90 days of the law coming into effect. It also notes that during the last year of the council's five-year term, certain decisions can only be made as determined by the Ministry of Finance and the Local Government Authority, thus shortening the period for councils to fulfill their responsibilities.

In addition to this, with this amendment, the hiring of permanent or contract staff for council offices, leasing or granting of land, lagoons, and reef areas under council jurisdiction, and initiating new development projects not included in the councils' established development plans have been terminated.

The case argues that these articles hinder the fulfillment of responsibilities and duties assigned to councils, undermining the power of the decentralized system established by the Constitution, and thus are in conflict with Article 230 of the Constitution.

It further states that these amendments obstruct people's right to govern through their elected representatives, and that passing the law with retroactive effect is contrary to the relevant articles of the Constitution.

The decentralized administration of administrative divisions of the Maldives is mandated by Article 230 of the Constitution.

Article 231 of the Constitution also states that the administrative divisions of the Maldives should be governed in a decentralized manner through councils elected by the people.