Yacht Tours sells Kudavilingili shares to Indian businessman

Yacht Tours Maldives has sold its shares of the Kudavillingili joint venture to a foreign company, with stakes held by an Indian businessman.

Yacht Tours Maldives held 95 percent shares of a joint venture company with the government, established to develop Kaafu Kudavillingili into a tourist resort.

An official from the Ministry of Economic Development said that following the go-ahead from the Ministry of Finance and the Maldives Inland Revenue Authority (MIRA), the Ministry has today completed the transfer of shares today.

“Since they had submitted all required documents, we’ve issued the statement of transfer of shares today,” the official said.

Yacht Tours Maldives is owned by Kaashidhoo MP Abdulla Jabir. The complete 95 percent share of the Kudavillingili investment was sold to a company owned by an Indian businessman, Dr. P. Mohamed Ali. Sun is aware that the transaction was worth MVR 18 million.

In late 2010, the government established the Kudavillingili investment with Yacht Tours as compensation following a Supreme Court ruling on 25th February 2010, which ordered recompense for the faulty bid evaluation of Kaafu Biyaadhoo, a bid that Yacht Tours had competed.

An official from the Tourism Ministry said today that although Yacht Tours has been allowed to sell of their 95 percent, the company has yet to inform them of the transfer of shares. The company is required to inform the authorities within 7 days of the transfer, the official said.

A Tourism Ministry official had earlier said that following the company's submission of the required Environment Impact Assessment (EIA) for Kudavilingili in 2010, the government had granted 36 months for Yacht Tours to develop the island, but said that the company had failed submit detailed drawings for the development plan.

The government recently terminated the lease agreements for two resorts owned by Jabir’s Yacht Tours, Alif Dhaalu Kudarah and Haa Alif Alidhoo, due to the company’s failure to pay rent and subsequent fines, which had accumulated to $7 million. However, the retractions of the two properties have been halted due to an injunction by Civil Court.