Contract with Tata to build flats in Naadhee, Odeon terminated

Maldivian government has cancelled its contract with Tata Housing to build luxury apartment complexes in the two sites where Naadhee and Odeon used to sit.

Tata laid the foundation for the two complexes in February after Maldivian government served the company with notice for termination of contract.

The company had planned to build luxury apartment complexes in the two sites named “Naadhee” and “Luxa I”.

News of the termination of contract was broken by Minister of Housing and Infrastructure, Dr. Mohamed Muizzu during a press conference held this Wednesday afternoon.

Muizzu said the Maldivian government had allowed Tata multiple concessions, but that the company had not done the construction work despite that.

He said the government did not want either the Maldivian government or Tata to incur any more losses due to the delay.

“We want to terminate the contract as the work hasn’t been done to date. We have made this decision in reference to the clauses in the contract and informed the parties of this decision,” said Muizzu.

Tata had scheduled the official inauguration of the Luxa I apartment complex in Odeon site for last Tuesday night, but the function was called off at the last minute.

Muizzu said Tata will no longer have the opportunity to build luxury apartment complexes in the two sites, and that a settlement agreement will be drawn up with the termination of contract.

He also said the government wasn’t happy with the standard of the social housing flats built by Tata in Gaakoshi and Arabiyya sites.