The High Court of the Maldives has ruled, by a majority of two judges to one, that the agreement to lease Kaashidhuffaru lagoon in Kaafu Atoll for a tourist resort is valid and still in force. It ordered the Ministry of Tourism to act in line with the agreement.
The judgment in case 2022/HC-A/173 was delivered on 29 October 2026. Either party may appeal to the Supreme Court.
The dispute
The appeal was brought by Hamid Ismail of Ma. Shooramanzil against the Ministry of Tourism (Maldives State). It challenged a Civil Court ruling in case 4114/Cv-C/2019 and was registered at the High Court on 2 June 2022. Marina Development Private Limited took part in the appeal as an intervening party.
The case concerns the lease of Kaashidhuffaru lagoon for the development of a 200-bed tourist resort.
22 June 2008: the first agreement was signed with the Ministry of Tourism.
19 February 2015: a later agreement was made between the parties.
19 June 2017: the ministry sent a termination notice (ref 88-LS/INDIV/2017/137).
The majority ruling
Judge Mohamed Shaneez Abdulla, with presiding judge Abdulla Jameel Moosa concurring, found the agreement between the parties valid and still in force. They ordered the Ministry of Tourism to act in line with it.
They also rejected the intervening company's request to keep the rights it had obtained, saying third-party rights cannot arise from an invalid act of the State.
Judge Moosa wrote that the 2017 termination notice was "born dead", with no legal effect from the start.
Judge Shaneez's opinion noted that if the lagoon is not returned, compensation for lost investment and future profit could be a very large financial burden on the State. Returning the lagoon, the opinion said, would be the least costly solution for the State.
The dissent
Judge Hassan Shafeeu dissented. He found no grounds to change the Civil Court's ruling.
What happens next
The parties may appeal the High Court's judgment to the Supreme Court. The full judgment is published on the High Court's website.