Noomadi Resorts and Residencies, a local company contracted to develop housing units on multiple islands, has refuted the government’s allegation that the company violated its agreement with the state.
A government official said in a recent interview with RaajjeMV that the agreement between the state and the company was terminated due to contractual violations.
However, a spokesperson from Noomadi said that the contract was terminated because of a dispute that arose due to a contractual violation for which the government is responsible.
The spokesperson said that the government had taken back an island leased to the company, as per the contract, in order for them to develop it into a tourist resort.
"The government took back the island in 2015, after several meetings with investors were conducted and arrangements were made in order to develop it. It was an immense loss for this company", the spokesperson said.
Noomadi proposed a settlement of USD 150 million to cover the losses, which is yet to reach an agreement. The spokesperson said that the company had seized their operations, despite 80 percent of the work being done, due to this.
The company was contracted by the Nasheed administration to build 500 housing units on multiple islands.