Tuesday
16th Apr 2024
Dhivehi Edition
TATA Housing
TATA Group to Invest USD36 Million After Demanding USD200 Million In Compensation For 2 Plots of Land
The TATA Group has announced that they would only be investing USD36 million on developing the plots of land that had recently been returned to them by the Maldivian government.
The Nasheed administration of 2008-2012 granted the corporation two important plots of land in Male City. The Solih administration had decided to renew the agreement last month.
280 flats were built at Gaakoshi and the plot that used to belong to Arabiyya School as social housing. In exchange for the scheme, the Nasheed administration had granted the TATA Group the lands that belonged to Odeon and the former Government Employee's Club. Lhossafushi (Lhaviyani Atoll) had also been given to be used as a resort.
However, as the TATA Group had been unable to make any use of the plots well after the duration of the agreement, the Yameen administration retook ownership over the plots and the island. The TATA Group demanded that they be compensated with USD200 million in exchange for the plots of land.
The agreement signed between the Nasheed administration and the TATA Group requires that any dispute that arises should be taken to arbitration centre in Mumbai, where the TATA Group has its headquarters.
As per the renewed agreement, Lossalafushi (Lhaviyani Atoll) has been granted to the TATA Group for a period of 99 years. The former Economic Minister, MP Mohamed Saeed (PPM-Maavashu), has stated that the TATA Group would recover USD675 million in the first 15 years, USD200 million would be earned as profit.
Under the renewed agreement, the TATA Group would operate luxury housing projects in Male City, and the company has prepared to invest USD36 million for the project.
The TATA Group's Managing Director Sanjay Dutt said that the company was anticipating the intiation of the project. He said that the structures that would be developed in those plots of land would be the "pride" of Male and the Maldivian people.
He further said that he wished to run more housing development projects in the Maldives and operate as a responsible real-estate developer in the Maldives.