In a significant development in the Coral Boulevard case, the Civil Court has declared its jurisdiction over a lawsuit demanding a substantial compensation of MVR 6.5 billion. This legal action stems from a land dispute involving Singapore’s Chang Hua Construction Company and the government’s handling of a prime real estate project.
Back in July 2018, the government allocated land in front of Rasfannu to Chang Hua Construction for the development of a residential complex named Coral Boulevard. This ambitious project envisioned the construction of four high-rise towers comprising both residential and commercial units. With plans for three towers dedicated to 549 residential units and the remaining tower for commercial use, the project was set to transform the landscape of Rasfannu area.
However, the trajectory of Coral Boulevard took an abrupt turn in 2019. The previous administration seized the land in front of Rasfannu, citing undisclosed reasons. As a form of restitution, the government proposed an alternative land allocation in Hulhumale. Unfortunately, this promise fell through, leading to a significant legal and financial dispute.
In response to the government’s failure to provide the agreed-upon land in Hulhumale, Coral Boulevard Company initiated legal proceedings. The lawsuit, filed against the state, the Housing Ministry, and the Finance Ministry, sought a compensation of USD 426.8 million, equivalent to MVR 6.5 billion. This compensation was claimed for the loss incurred due to the seizure of the land.
In a recent ruling, the Civil Court clarified its position on the matter. It affirmed its authority to adjudicate the case, setting a critical legal precedent. However, the court’s decision also delineated the scope of the lawsuit, ruling that while the Housing Ministry is a viable defendant, the state and the Finance Ministry are exempt from this particular legal action.
In light of the court’s decision, the plaintiff, Coral Boulevard Company, has been instructed to prepare and submit a detailed statement of claim against the Housing Ministry within 14 days.
The seizure of the land in front Rasfannu by the previous government has had far-reaching implications. Not only did it halt the construction of the Coral Boulevard complex, but it also affected individuals who had invested in the property, leaving potential homeowners and investors in a state of uncertainty.
