The Civil Court declined to issue a stay order sought by the Vaavu atoll council to stop the lease of Fotteyo lagoon (Dhiggaru lagoon) under the cross-subsidy policy.
A legal challenge was mounted on the grounds that the government is selling the lagoon without the council’s consent.
The court was asked to order the tourism ministry in absentia to only lease the lagoon in accordance with a decision to be made by the council.
But the court ruled that a stay order was not warranted by the circumstances.
The government is planning to lease the lagoon as a cross-subsidy for airport development.
According to sources, the investor is Aman Resorts, the operator of several high-end properties. But there has been no official confirmation yet.
Aside from the Vaavu atoll council, the opposition has also objected to leasing Fotteyo, calling it an “atrocity” for the government to raise funds for the upcoming presidential election, an allegation that the government denies.
