Meridiam Services ordered to pay MVR 19 million to STO
Meridiam Services has been given a six-month period to make the payment, from August 1
Riyaz Rasheed, majority stakeholder at Meridiam Services
Meridiam Services, where former Vilufushi constituency MP Riyaz Rasheed is majority stakeholder, has been ordered to pay MVR 19 million to the State Trading Organization (STO).
While the Civil Court had ruled in favor of the company in 2016, in the case submitted by STO seeking the amount for fuel released to the company on credit from March to December 2010, the High Court overruled the judgement on Thursday.
Meridiam Services has been given a six-month period to make the payment.
The High Court verdict states that witness testimonies and documentary evidence proved that STO had released fuel to Meridiam under credit.
Further noting that STO had sent a total of 183 invoices to Meridiam Services, the court said that it shows that the company owed MVR 18,949473.40 to the State Trading Organization, adding that an additional MVR 384,198 is owed for failing to pay the sum by 1st December 2010.
If the company fails to comply, STO has been given the authorization to sell off two vessels mortgaged by Meridiam under Article 4 of the ‘Credit Facility Agreement’.
