The Civil Court has ordered the Road Development Corporation (RDC) to pay MVR 11.7 million in outstanding dues to India’s Lucky Global Projects in a single lump-sum payment.
The case was brought before the court following RDC’s failure to settle payments owed under multiple agreements signed between the two companies in 2023.
Although three separate settlement agreements were reached earlier this year regarding the outstanding debt, RDC failed to honour the payment schedules outlined in those agreements.
During the court proceedings, RDC admitted to the debt owed to Lucky Global Projects. The state-owned enterprise attributed its failure to meet the agreed payment terms to its deteriorating financial situation.
Citing these financial constraints, RDC requested that the court allow the debt to be settled in monthly instalments. The corporation further stated that it was in ongoing discussions with Lucky Global Projects to negotiate more flexible terms.
However, Lucky Global Projects objected to RDC’s request for a restructured payment plan. The company requested that the court issue a summary judgment ordering the immediate full payment of the debt without further hearings.
Under the Maldives’ Civil Procedure Act, debt repayment in instalments can only be granted if the creditor consents to such an arrangement. As Lucky Global Projects refused to agree to a staggered payment plan, the court ruled that RDC must settle the full amount at once.
RDC has been plagued by financial losses since its inception. The corporation has also faced allegations of high-level corruption and the misappropriation of funds.
As part of the government’s current austerity measures, a decision has been made to dissolve RDC and merge its operations under the Maldives Transport and Contracting Company (MTCC).
