MP Azaan Criticizes Payment Concessions to Big Businesses Defaulting on HDC Land Rent

Hithadhoo Medhu MP Ahmed Azaan has raised concerns over the concessions granted to large businesses defaulting on land rent payments to the Housing Development Corporation (HDC). Speaking during a Public Accounts Committee (PAC) meeting, Azaan questioned the fairness of allowing big companies extended deadlines for overdue payments while smaller entities face stricter consequences, such as canceled contracts.

The PAC meeting, held to address non-payment of land rent for commercial purposes, followed the committee’s November 6 decision to request detailed records from HDC. According to the data shared, MVR 1.2 billion remains unpaid for land leased to various businesses.

Azaan highlighted a case involving a company listed as owing MVR 11 million for multiple properties leased over several years. He expressed frustration at the payment extensions granted to such entities, emphasizing that these large businesses are run by prominent industrialists and should not face difficulty in meeting their obligations.

"The company at number 12 in the list owes 11 million. This amount accumulated over years of non-payment for two or three properties. It is unfair that payment extensions are given to such businesses while smaller companies receive no leniency," Azaan stated. He added that HDC should clarify under which rules these extensions were granted and whether the same flexibility is extended to all businesses.

The MP also stressed the importance of summoning HDC officials to explain the criteria used for granting extensions to defaulters and to ensure fairness in the process. He argued that any preferential treatment undermines principles of equality and called for transparency in handling the arrears.

In response to growing concerns, HDC has issued notices to defaulting businesses, urging them to settle outstanding dues for leased properties and services by November 30. Businesses that fail to comply will face additional measures, including the publication of their information on HDC's website. HDC is also considering strategies to recover rents, address vacant properties resulting from canceled contracts, and prevent further defaults.

The PAC has endorsed HDC's proposed measures to address rent arrears and has called for continued scrutiny to ensure adherence to fair practices. The debate comes amid increasing public and parliamentary pressure to ensure equitable treatment of businesses while safeguarding state revenues.