Ministry defends discounted Hulhumalé land sale

Sep 9, 2026, 7:09 PM
Housing Minister Muttalib: Housing Ministry admits to selling a plot of land in Hulhumalé to an individual at a discounted rate.

Housing Minister Muttalib: Housing Ministry admits to selling a plot of land in Hulhumalé to an individual at a discounted rate.

The Housing Ministry has defended its decision to sell a plot of land in Hulhumalé Phase 2 at a significantly undervalued price, following widespread public outcry over the transaction.

In a statement released today, the Ministry clarified that the sale of the land to an individual identified as Ahmed Zahir was executed in accordance with a 2003 government decision to allocate him a plot in Hulhumalé Phase 2.

The Ministry noted that official records confirm Zahir was among 56 individuals designated to receive land under a housing scheme managed by the then-Maldives Housing and Urban Development Board (MHUDB) on December 22, 2003.

"Documents issued by the Hulhumalé Development Unit of the President’s Office on December 24, 2003, verify that he was allocated a 904-square-foot plot priced at MVR 339,000 under that scheme," the statement read.

The Ministry further claimed that although Zahir had petitioned every successive administration to resolve the matter, no previous government had provided a solution.

The Ministry stated that the land in Hulhumalé Phase 2 was sold to Zahir to settle the long-standing issue, honoring the commercial terms agreed upon during former President Maumoon Abdul Gayoom’s administration.

The statement also specified that the plot sold to Zahir had become available after the cancellation of an agreement for a plot previously allocated under the "Binveriya" scheme to an individual who did not meet the basic eligibility criteria.

According to the Ministry, the sale was finalized on the condition that Zahir relinquish a separate plot of land he had been allocated in Gulhifalhu under the "Binveriya" scheme.

Furthermore, the Housing Ministry announced its decision to submit the case to the Anti-Corruption Commission (ACC) for review.

A leaked internal memo from the Ministry circulating on social media reveals that the 1,250-square-foot plot in Hulhumalé was sold to Zahir for MVR 468,750. This equates to just MVR 375 per square foot.

With current market rates for land in Hulhumalé exceeding MVR 10,000 per square foot, the transaction represents a discount of approximately 96 percent.

A source familiar with the matter told Adhadhu on the condition of anonymity that the Housing Ministry was directed by the President’s Office to facilitate the sale at an undervalued rate. Zahir is a member of the ruling People’s National Congress (PNC).

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