Supreme Court rules Jabir’s Yacht Tours’ accounts frozen unlawfully

Supreme Court, on Wednesday, has ruled former Kaashidhoo MP Abdulla Jabir’s company, Yacht Tours Private Limited’s bank accounts were frozen at the instructions of Maldives Inland Revenue Authority (MIRA) unlawfully.

Tourism Ministry has leased the following locations to Yacht Tours for tourism development purposes:

• HA. Alidhoo in 2005
• HA. Binaafushi and Kan’daali Finolhu in 2013

The company’s bank accounts were frozen at the instructions of MIRA in 2017 over the failure to pay rent and fines under the lease agreements executed with Tourism Ministry.

The regulation governing the payment of rent for islands and land leased by the government states that MIRA is responsible for enforcing the regulation and taking action to recover the rent.

The details on non-payment of rent under the agreements executed between Tourism Ministry and Yacht Tours:

• Failure to pay rent within the stipulated timeframe will result in liquidated damages charged at a rate of 0.5 percent of pending dues per each passing day
• Tourism Ministry has the discretion to nullify the agreement if the rent and liquidated damages are not paid within 30 days from the date the rent was due

In 2017, Yacht Tours filed a lawsuit against MIRA in the Civil Court, claiming the company’s bank accounts were frozen unlawfully. Civil Court concluded the case in favor of MIRA, citing there was no grounds to establish the company’s yacht tours were frozen unlawfully. Subsequently, Yacht Tours appealed the case with the High Court, which also concurred with the Civil Court.

As such, the company appealed the case with the Supreme Court which said MIRA had violated the Intepretation Act in interpreting the law and facilitated remedies that have not been specified in the contract. The top court also said High Court ruled MIRA’s decision was supported by legal grounds in violation of the Tax Administration Act.

Supreme Court overturned High Court’s decision in favor of MIRA, citing the measures imposed by the Authority against Yacht Tours had been beyond the scope of the agreement.

MIRA had argued that the Authority had no obstruction to implement the measures as the regulation governing payment of rent for islands and land leased by the government states that MIRA is responsible for enforcing the regulation and taking action to recover the rent.