Housing Development Corporation (HDC) has started imposing fines on recipients of Hiya flats who are not paying rent as specified in the agreements.
HDC began collecting rent for Hiya flats on April 1. The collection of rent began more than eight months after the agreements were signed with Hiya recipients. The grace period was extended on three separate occasions to allow for the completion of finishing works at the flats.
HDC stated that Hiya recipients who are not paying the agreed rent have been sent the first payment advice. As per the advice, the outstanding amount and the associated fine must be paid within 30 days after the advice is received. Meanwhile, the Civil Court of the Maldives has rejected a request by the Hiya Union for an order to extend the grace period. The ruling by the Civil Court stated that Hiya Union is not a part of the agreements signed between HDC and Hiya recipients, and therefore holds no legal status in the matter.
The monthly rent of Hiya flats is MVR 7,500. However, Hiya recipients are required to pay MVR 8,500 per month to HDC, which includes a maintenance fee of MVR 1,000.
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