Gasim Ibrahim, the Chairman of Villa Group and leader of the Jumhooree Party has said that the settlement agreements made by the Tourism Ministry with the Villa Group cannot be terminated although the ministry claims it has already been terminated.
Gasim Ibrahim made this remark at the first hearing of the case to revoke MIRA's notice to for rent and penalty payments due for the islands being developed by Villa group.
The appeal by Villa asks the court to cancel MIRA’s notice to pay $100 million in rent and penalty payments and cancel any payments regarding the matter.
Tourism Minister Ahmed Adeeb announced that the Villa Group owes the government $100 million in rent and penalty payments for the islands leased to the company.
During the hearing, Gasim noted that thousands of million dollars have been paid in advance to some of the islands included in those agreements including Thaa Atoll Elaa and Gaafu Dhaalu Atoll Gazeera. He said that the agreement stipulates that the payment of the lease of these islands should be initiated from next Year’s June.
Gasim asked how MIRA is demanding Villa Group to pay $100 million in rent and penalty payments while the agreements clearly says otherwise.
In addition to this, Gasim also said that if the accounts of the Villa Groups are frozen then the five thousand and more employees working in Villa companies will have to suffer.
The Tourism Ministry on February 5th, 2015 revoked the settlement agreement where 3 islands and 3 reefs were handed over to the group as collateral due to the government’s inability to provide a financial settlement.
Villa Group made an appeal to delay the notice till a solution for the issue could be found. Civil Court found the claim to be a sound argument, however the delay notice was dissolved by the High Court after an appeal by the government.
Settlement agreements cannot be terminated- Gasim
