Court clears sale of three Laamu islands over BML loan

The Civil Court has authorised Bank of Maldives (BML) to sell the rights to three islands in Laamu Atoll that were mortgaged by Heavy Load Maldives, to recover a debt of about USD 29.5 million (MVR 455 million).

The order, issued on 28 October by Judge Rizmeena Idrees, covers the head lease rights of L. Fares, including the resort being developed there, L. Boduhuraa and L. Kudafares. BML has three months to sell them.

The debt

The islands were mortgaged by Heavy Load Maldives Private Limited together with the former deputy speaker of Parliament Moosa Manik and Mudhrikath Moosa, Migdhadh Moosa and Bushainath Moosa. The court found that the debt from a 2020 Civil Court judgment had not been paid. By 25 October the amount owed had reached USD 29,500,217.87.

The debtors raised no objection when BML asked to sell the islands, and agreed to the sale.

Minimum prices

The reserve prices are based on a valuation report prepared under a High Court ruling, and fall each month the islands go unsold:

• First month: USD 46,633,000

• Second month: USD 40,820,000

• Third month: USD 38,779,000

If the islands are sold, BML must give the court the details and deposit the money with the court within 10 days. If they are not sold within three months, the bank must tell the court within 10 days of the deadline.

Background

BML lent Heavy Load USD 11 million in December 2016, secured on the three islands. An earlier attempt by the bank to auction the islands in 2024 was halted by the High Court, which later cancelled that sale order and sent the case back to the Civil Court.