The Vaavu atoll council has expressed concern over the government's plans to lease Medhufinolhu lagoon, adjacent to the protected area of Vaavu Miyaru Kandu, to Kaani Hotels for the development of a resort.

In a letter signed by Vaavu atoll council President Shujau Ali and addressed to Tourism Minister Ibrahim Faisal today, the council noted that it was unlawful to develop a resort on Medhufinolhu lagoon as the adjacent Miyaru Kandu dive point has been a protected area since 1995.

"The 'Vaavu Miyaru Kandu area' (1382.54 hectares) adjacent to the location marked for reclamation for resort development has been a protected area since 1995 and it is unlawful to carry out such a project in the area so we inform you to stop the project," the letter stated.

The government first tried to lease the Vaavu Bodufinolhu sandbank to Kaani Hotels for resort development. But plans were changed after the atoll council and tourism businesses protested against the decision.

But the government is now working to lease Vaavu Medhufinolhu lagoon to Kaani Hotels instead of the Vaavu Bodufinolhu sandbank.

The letter stated that the government was trying to lease the lagoon in violation of the Decentralization Act as government authorities had not discussed the matter with the atoll council although the law states that any decision to use, develop or lease any resources within the jurisdiction of the council must be done with consultation with the council.

The government has not officially announced whether any efforts were being made to lease the lagoon to Kaani Hotels.

The protected area of Miyaru Kandu is a narrow channel and both sides of the channel have overhangs and large coral blocks festooned with soft corals.