The government has begun taking back leased islands and lagoons where developers have failed to meet contract obligations, starting with Minaavaru and Udhdhoo in Noonu Atoll.
Attorney General Ahmed Usham said the decision followed repeated monitoring visits that showed no progress on projects that were expected to focus on agriculture and value-added production. Both islands were leased to Sun Travels and Tours.
In the case of Udhdhoo, the government opted not to renew the lease after the original 25-year term expired. For Minaavaru, leased for 21 years starting in February 2010, the agreement was terminated before expiry due to continued non-compliance. The Ministry had issued a formal notice to the company on 19 March, allowing 30 days to meet the contract’s requirements. No corrective action was taken, and the government moved to end the lease on 5 May.
Authorities say similar issues exist with other islands and lagoons leased for both tourism and agricultural purposes. A review is underway to identify sites where little to no work has been carried out, with further lease terminations expected if agreements remain unfulfilled.
The move comes amid broader efforts to ensure that public resources are actively utilised and not left dormant under inactive or lapsed development projects.
