The Environment Protection Agency (EPA) has fined Villa Shipping and Trading Company Pvt. Ltd. with MVR 83,750 for illegally extracting sand from B. Dhigufaru to use on Royal Island Resort.

EPA said the company had been fined as they had extracted a significant quantity of sand from Dhigufaru, and that they had declined to heed EPA's warnings when asked to cease all sand extraction operations.

Villa Shipping and Trading Company Pvt. Ltd. was fined by EPA according to provisions made under the Environment Protection and Preservation Act 4/93, which gives the government the right to claim compensation for all the damages that are caused by activities detrimental to the environment.

The company now has 30 days to pay the full fine of MVR 83,750.

The government website which publishes details about the status of islands, "Isles", describes Dhigufaru as an island leased for resort development for 50 years within the B. Horubaidhoo lease agreement, to Island Travel and Trade Pvt. Ltd.