HDC Recovers Over MVR 200 Million in Unpaid Debts

The Housing Development Corporation (HDC) has announced the recovery of MVR 226 million from the MVR 1.4 billion owed by various parties in unpaid rents and dues. This progress comes as the Parliament's Public Accounts Committee investigates HDC’s measures to address these long-standing debts.

Speaking before the committee, HDC Managing Director Ibrahim Fazul Rasheed highlighted the formation of a recovery committee under his leadership, tasked with resolving financial disputes and recovering debts. Fazul stated that the committee has successfully reclaimed over MVR 200 million by issuing demand notices, terminating agreements with non-compliant parties, and initiating preparations for court proceedings.

Fazul emphasized that HDC prioritizes collaboration with commercial tenants by offering installment-based repayment plans to avoid court action. However, unresponsive parties face legal measures.

Breakdown of outstanding debts owed to HDC:

- Private companies: MVR 985 million

- Government-owned companies: MVR 185 million

- Government: MVR 53 million

Many of these debts relate to leases of buildings and plots in Hulhumalé's Phase 1 and Phase 2 developments, with significant arrears attributed to major private businesses.