TATA Housing receives Odion, Naadhee and Island

  • Maldives
  • Business
PUBLISHED 10 January 2022

The Maldives government has decided to renew a cancelled agreement with Indian giant Tata to build luxury flats in the capital Malé.

The housing project was signed by former president Mohamed Nasheed’s administration in May 2010 with Apex Realty Pvt Ltd, a joint venture between Tata Housing and SG18 Developers. In exchange for building 280 flats in the former Gaakoshi and Arabiyya School plots in Malé, the government awarded two other land plots, Odion and Naadhee, to develop and sell luxury apartments.

The island of Lhossalafushi in Lhaviyani atoll was also leased to Tata for resort development

But the project was stalled due to contractual disputes after Nasheed’s successor took over the vacant Naadhee site to build a new Supreme Court complex. After failed renegotiation attempts, President Abdulla Yameen’s administration terminated the agreement, reportedly citing delays in commencement.

An out-of-court settlement was reached after Tata Housing filed its claim with the Mumbai Centre for International Arbitration for USD 200 million (MVR 3 billion), local media reported, citing the housing ministry.

The previuse administration lost two arbitration cases in Singapore. In November 2016, Indian firm GMR was paid more than USD270 million for the cancellation of a concession agreement to develop the international airport. A month later, Malaysia-based security firm Nexbis Solutions won an arbitration award of USD15 million for the termination of a border control project.

"We will sign the revised agreement within this week," informs the State Minister of National Planning Akram Kamaluddin