The Housing Development Corporation (HDC) has reclaimed the plots of land allocated to parties selected for café and restaurant development in the Channel Park area of Hulhumalé Phase I, triggering controversy.

These plots were awarded to six companies in March 2023 under the Urban Boulevard project, which aims to develop the area connecting the two phases of Hulhumalé. The companies are Dreams Private Limited, Dinemore Restaurant, Misraabu Private Limited, Brothers Catering, Refcool, and Celsius Private Limited.

HDC reclaimed the lands, claiming that no meaningful work had been carried out.

In response, the companies jointly sent a letter to HDC Managing Director Brigadier General (Retired) Ali Zuhair, outlining multiple unresolved issues that prevented them from moving forward with their projects.

According to the letter, the companies participated in a bidding process and paid acquisition fees ranging from MVR 1.5 million to MVR three million. They have been paying more than MVR 400 per square foot in acquisition costs and a monthly rent exceeding MVR 25 per square foot.

Although the allocated plots ranged from 1,700 to 3,200 square feet, construction was permitted only on a maximum of 1,000 square feet.

The companies also cited delays due to lack of water and electricity supply, as well as the absence of parking areas, unpaved access roads, difficulties with vehicle loading and unloading, and periodic flooding in the area.

They further highlighted inequality in opportunities, noting that HDC allowed additional floors in some commercial areas but did not extend the same option to all parties.

The letter also pointed to disparities in Phase II Channel Park allocations, including differences in acquisition fees and monthly rents. The Phase I developers claimed their counterparts in Phase II received larger construction areas and more opportunities to generate income, while they were required to pay higher prices for smaller areas.

Despite raising these concerns with HDC, the companies said no satisfactory solutions had been provided. They requested a meeting with the Managing Director to reach an agreement on resolving the issues.