Thilamale' bridge developer Afcons has decided to challenge a fine imposed by the Environment Protection Agency (EPA) for damage caused by a platform that ran aground on the Vilimale' reef.
The EPA fined Afcons MVR 69.4 million over the incident. When the company appealed to the Environment Ministry for a review of the fine, former Environment Minister Aminath Shauna decided not to waive or reduce the fine.
Afcons has since sought a stay order to halt enforcement of the fine. But the Civil Court decided not to grant the order.
In its court case, Afcons denied any negligence in the grounding incident, which it said was caused by large waves beyond its control.
While the environment impact assessment (EIA) report of the Thilamale' project accepted damage to the reef, and since the report compiled after the incident did not state any negligence by the company, Afcons said the fine was imposed without proving that the company's actions were to blame.
Afcons has not yet filed a lawsuit in the matter. The company sought to delay payment of the fine with a stay order for the EPA and relevant ministries not to take any action in relation to the fine.
The request for a stay order is a right granted to claimants under the new civil procedures law.
In its response to Afcons, the state told the court that there were no legal grounds to grant a stay order in the case. The purported "reputational loss" claimed by Afcons as a famous company did not warrant issuing a stay order, the state attorney argued.
The judge also noted the argument among the reasons for not granting the order requested by Afcons.
Afcons failed to show that the case called for urgent remedial action to ensure justice, Judge Zulaiha Sheeza wrote in her ruling.
The other point raised by Afcons was the effect on the company's cashflow due to having to pay the fine, which it argued could also be grounds for terminating the agreement But the company failed to show how such a situation could arise, the judge noted.
The "Yuvaraj" platform ran aground on the Villimale' reef in August last year after an anchor malfunction. It took 12 days to remove the platform. When the damage was surveyed, 10-feet deep holes were found in the reef.
