Asset Recovery Commission has informed Housing Development Cooperation (HDC) to halt issuing compensation to the victims of the Sealife Global scam.
Sealife announced its 3,000-apartment housing project, the SeaLife Complex in Hulhumale’ in 2015. More than 203 people paid booking fees and down payment for the apartments. However, work on the project was never started and the company never reimbursed the individuals their down payments. A lawsuit was filed subsequently filed against Sealife Global and HDC by the victims.
Asset Recovery Commission ordered to HDC to halt providing compensation while an out of court settlement was reached earlier on Monday.
Asset Commission's reason for halting the victims from being reimbursed is due to ongoing investigations into Sealife Global by Asset Commission as well as the Anti Corruption Authority (ACC). The complaints against Sea Life Global were filed at the two investigative bodies by the same buyers who incurred losses from Sealife Global.
HDC released a press statement on Tuesday regarding the out-of-court settlement agreement to reimburse the clients scammed by the private real estate developer. The statement said although both parties can conclude that there was no negligence on both HDC and government's part, the settlement agreement was signed to ease the losses faced by many people and to give them justice.
Under the agreement, HDC will reimburse the victims an amount equal to what they paid to SeaLife Global, and provide housing units under the government's housing scheme as a compensation for the damages caused.
HDC further stated that the corporation would continue their attempt to seek compensation from SeaLife Global for the direct and indirect losses incurred by HDC.
An out of court settlement agreement was reached due to HDC being included in the lawsuit. Since a settlement had been reached, Civil Court concluded the case without further hearings. The settlement agreement was reached after discussion between the government, HDC and the victims of Sealife Global, said the Civil Court ruling.
The ruling further stated that SeaLife had admitted in court that the payments taken from the tenants needed to be refunded. But Sealife insisted the company’s Managing Director Ahmed Moosa (Ammaty) cannot personally be held accountable for the dealings.
In the initial phase of the project, Sea Life Global took a booking fee of MVR 50,000 from 280 interested buyers, for the projected 300 apartments in the building. This adds up to approximately MVR 14 million.
Interpol issued a red notice to locate Managing Director of Sea Life Global Private Limited Mohamed Ahmed Moosa (Ammaty). However he has not been located thus far.
