The State Bank of India (SBI) Male’ branch has launched the sale of leasehold rights for two prominent Maldivian resorts—Dholhiyadhoo Island Resort in Shaviyani Atoll and the islands of Gaseveli, Dhekunuboduveli, and Kudafushi in Meemu Atoll. These actions follow legal proceedings and judgements issued by Maldivian courts, authorising the bank to recover outstanding dues linked to these properties.
The first auction targets the Dholhiyadhoo Island Resort leasehold rights. Owned by Dholhiyadhoo Investment Pvt. Ltd., the lease for this property is set at a minimum reserve price of USD 12 million. The lease agreement, initially dated 5 May 2005, grants rights until 4 May 2040, with potential extensions subject to government approval and additional fees.
The second property includes lease rights for the islands of Gaseveli, Dhekunuboduveli, and Kudafushi, owned by Gaseveli Island Pvt. Ltd., with a base reserve price of USD 1 million. The lease, initially granted on 3 September 2006, remains valid until 2 September 2031, also open to potential extension pending government consent and associated fees.
Auction and Bid Submission Details
Interested parties are invited to submit their bids from 22 October to 2 December 2024. The final bid opening will take place on 2 December 2024 at SBI’s Male’ branch. Bidders must comply with specific submission guidelines, including a sealed bid format and eligibility requirements for both local and foreign entities. SBI has stipulated that bids below the reserve prices will not be accepted, marking them as invalid.
Financial and Deposit Requirements
To participate, bidders must make an Earnest Money Deposit (EMD) of USD 15,000, which will be forfeited if the winning bidder fails to meet subsequent payment milestones. The payment schedule requires the successful bidder to deposit USD 1 million for Dholhiyadhoo or USD 300,000 for the Gaseveli group of islands within seven days of the award letter. Additional payments must be made within 30 and 60 days for each property, as outlined by the auction’s terms.
Transfer Process and Forfeiture Conditions
Upon full payment, the successful bidder must coordinate with relevant Maldivian authorities to transfer leasehold rights. SBI reserves the right to forfeit deposits and EMDs if the bidder fails to meet scheduled instalments, ensuring rigorous adherence to bid terms. Additionally, if a successful bid falls through, SBI may consider the next highest offer.
Additional Conditions
Potential bidders are urged to review the auction conditions thoroughly. SBI emphasises that these properties are being sold “as is,” without warranties regarding their state or suitability. Furthermore, the bank maintains the right to amend or cancel the auction terms without prior notification.
This sale represents SBI’s ongoing efforts to resolve outstanding non-performing assets, reflecting a broader trend of financial institutions taking decisive steps to manage debt recoveries in the Maldivian market.
