The Civil Court has ordered former Attorney General Aishath Azima Shukoor to pay more than MVR 4 million owed to the Maldives Islamic Bank (MIB) under a "musharakah agreement."
The Civil Court delivered the judgment against Azima - who is running for mayor of Malé in a by-election on January 13 - in her absence. The lawsuit involved the purchase of an apartment with the loan.
Diminished musharakah is a financing technique for joint ownership of an asset or property. Either of the joint owners could gradually buy out the other owner's shares and take ownership of the asset.
An outstanding amount of MVR 4,030,856 to date from the diminished musharakah financing facility along with MVR 125,499 accrued as charity were established at court, according to Judge Zuhaila Sheeza's judgment.
The court determined that Azima owes a total of MVR 4,156,355 to the bank and ordered her to pay the amount with monthly instalments over the next six months.
As an apartment and plot of land registered under Azima's name in Hulhumalé were mortgaged, the court ruled that the Islamic Bank retained rights and powers under the mortgage agreements until the payment was settled.
