The primary opposition party, Maldivian Democratic Party (MDP), has submitted a lawsuit to court aiming to annul the changes made to the Decentralization Act, which governs the decentralized administration of the Maldives' administrative divisions.

In the lawsuit submitted on Thursday, MDP claimed that the clause introduced as Article 70 (f) and the clauses included as Article 144-1 in the 16th Amendment to the Decentralization Act breach the principle of decentralized governance of administrative divisions outlined in Article 230 of the Constitution.

Additionally, they have asked for the declaration of these two amendment articles as void, claiming that they violate the Constitution's provision allowing people to govern via their elected representatives and the constitutional right to acquire and own property. They further assert that these articles were adopted in contravention of Article 16 of the Constitution.

The 16th Amendment to the Decentralization Act, suggested by the government, was approved by the People's Majlis and endorsed by the president on 14 August 2025, taking effect immediately.

The case presented to the Supreme Court indicates that the alterations to the law have established regulations that limit the authority and functions of local councils.

It emphasizes that the operations of Local Authority Companies must adhere to particular criteria, restricting their range. It specifies that these activities should be crucial for the island or islands' urban development, and the investment or capital sum must surpass MVR 10,000,000.

The case further states that Local Authority Companies failing to meet these criteria must stop operations within 90 days of the law's implementation. It also mentions that in the final year of the council's five-year term, specific decisions can only be made as specified by the Ministry of Finance and the Local Government Authority, thereby limiting the time available for councils to meet their obligations.

Furthermore, this amendment has led to the cessation of hiring permanent or contract personnel for council offices, leasing or permitting land, lagoons, and reef areas within the council's authority, as well as starting new development projects outside the council's approved development plans.

The case claims that these articles obstruct the execution of responsibilities and duties designated to councils, weakening the authority of the decentralized system created by the Constitution, and therefore are inconsistent with Article 230 of the Constitution.

It also claims that these changes hinder individuals' ability to rule via their chosen representatives, and that enacting the law with retroactive impact violates the applicable sections of the Constitution.

Article 230 of the Constitution mandates the decentralized governance of the Maldives' administrative divisions.

Article 231 of the Constitution specifies that the Maldives' administrative divisions must be managed in a decentralized way by councils chosen by the population.