HDC terminates Jaah’s ‘The Gardens’ contract

The Housing Development Corporation (HDC) has terminated its contract with Jaah Investment Private Limited for the development of high-end apartments at Hulhumale’.

HDC contracted Jaah Investment for the luxury housing initiative dubbed ‘The Gardens’ in 2017, with immediate commencement of physical development.

Despite the project’s commencement in 2017, it had not reached completion till date while several buyers who had acquired apartments through pre-sales have faced significant financial and economic losses.

Jaah received project completion extensions from HDC but to no avail as the development remained stagnant. HDC issued its final notice to Jaah on January 27^th this year, demanding the contractor to complete all unfinished aspects of the initiative within a 45-day period, and the failure to comply would result in a lawful contractual termination.

HDC issued a statement on Sunday, March 16^th, confirming its formal decision to terminate its agreement with Jaah Investment as the contractor had failed to comply with HDC’s notice.

HDC added it would reach out to the buyers to provide information on the corporation’s intended plan of action to complete the project, and added this decision reflects the corporation’s prioritization to award apartments to those who have already acquired them through Jaah’s pre-sales.

The buyers earlier on January 19^th, had submitted a letter addressed to Maldives President Dr. Mohamed Muizzu, seeking a recourse in the matter.

Jaah Investment, under the same management umbrella of one of the biggest names in the Maldivian construction scene; Jausa, was awarded ‘The Gardens’ project in 2017 with the condition to complete it within two years.

Owing to significant delays in the project, many of the buyers had protested on several occasions previously.