Maldives renews contract with TATA Housing amid fears of a USD 250 million penalty
The agreement to develop flats in the capital city was signed during former President Mohamed Nasheed’s administration in 2010
One of the plots given to TATA Housing for development
The Maldivian government has renewed its agreement with TATA Housing, amid fears of a USD 250 million penalty.
While the agreement to develop flats in the capital city was signed during former President Mohamed Nasheed’s administration in 2010, the current government terminated the agreement in April 2017.
Housing Minister Dr. Mohamed Muizzu had said that the contract was terminated due to the company’s failure to proceed with the construction work within the given timeline.
TATA was hired to develop 127 luxury flats in Malé and had completed the foundation work at the time the contract was terminated.
After the cancellation of the deal, TATA Housing filed an arbitration case at the Mumbai Arbitration Centre seeking USD250 million in damages.
A senior government official informed that the reason the agreement was renewed was because the government ‘knows that it will not win the case’.
While the agreement to develop flats in Nadhee and Odeon have been renewed, the Maldivian government offered the company a new deal; including a fresh plot in Malé City and an island for resort development.
