Permission granted to sell assets mortgaged for Funaddoo loans

Civil Court has granted permission to Bank of Maldives (BML) to sell the assets mortgaged by Funaddoo Tuna Products to obtain loans from BML, following failure by Funaddoo Tuna Products to repay the loans as ordered by Civil Court in 2010.

The guarantors for the loans are Medhu-henveiru MP Ali Azim, Alifushi MP Mohamed Nashiz, Ahmed Rafeeg of M. Rafeeguge, and Reethi Beach Private Limited.

Five loans worth MVR117 million were taken under Funaddoo’s name, and the loans are currently valued at MVR206 million inclusive of interest.

The Civil Court ruling details that the mortgaged assets should be handed over to BML within 15 days.

The mortgaged assets are all buildings and investments in Th. Funaddoo, three Madivaru safari boats and Reethi Beach Resort.

BML’s lawyer said in Court that no money had been received in accordance with the Civil Court ruling on 7 February 2010.

Funaddoo’s lawyer acknowledged that no money had been paid out following the Civil Court ruling, and said that efforts are under way to repay the loans. He requested to withhold taking any action until the loans can be repaid.

However Judge Ali Rasheed said that time had been allowed to repay the loan, and granted permission to sell the mortgaged assets.

The Judge noted that no ruling is issued on the guarantors of the loan because assets had been mortgaged. He said that the borrower would have been fined or put under house if the loans had been provided without mortgages.

The Judge also highlighted that the trial for this case had had to be cancelled on several occasions due to failure by the defendant to attend Court.

The defendants were absent from Court today as well, and red notices have been put up on the entrances of the residences of Medhu-henveiru MP Ali Azim and Alifushi MP Mohamed Nashiz, subsequent to their failure to comply with Court summons.

In addition to the red notices, the Court had even ordered the Police to detain them in order to produce them in Court. Moreover, their passports have been withheld and bank accounts have been frozen.

Civil Court’s ruling of 7 February 2010 was appealed to High Court, which also ruled in favour of Civil Court.