Government of Maldives has dissolved the agreement with India’s Tata Group to build 127 luxury flats in Male’.
During a press conference on Wednesday, housing minister Dr. Mohamed Muizzu said government had given a 90-day notice to Tata in accordance with the agreement, but even by the end of the notice period the company failed to start physical work of the flats to be constructed on two sites of the capital city.
He said that government’s decision has been conveyed to Tata.
Muizzu said starting physical work of the project does not mean just building fences and cutting down trees. He added that despite government’s leniency the company failed to start construction work.
While the agreement has been dissolved, it should be noted that foundations of both the complexes were laid in February.
Tata's subsidiary Apex Realty had previously said that construction would begin in May.
In an interview with state media at the end of last year, Muizzu said the ministry was extremely concerned that construction had not begun. He said although housing ministry had been providing cooperation to allow construction to begin, work had not begun.
Under the agreement, Apex Realty was to build 45 flats in Odeon grounds and 75 flats in Naadhee grounds.
The project to construct 350 residential flats in Male’ was awarded to Tata in April 2010. As per the agreement, the flats – to be constructed at four sites – were to be completed within 2 years for USD 18.9 million (MVR 291.4 million).
The construction of 288 flats in Gaakoshi at former Arabiyaa School grounds completed last year and has been handed over to the government.