HDC suffers near MVR 11 Bn loss from free land allocation

The Housing Development Corporation (HDC) has reportedly incurred a loss of close to MVR 11 billion from issuing lands free of charge.

In the Budget Position Review, the Auditor General’s Office detailed its findings, highlighting the documents shared by HDC with the authority showed the corporation had incurred between MVR 7.2 billion and MVR 10.5 billion from allotting lands for the ‘Binveriya’ scheme.

Auditor General’s Office added that this includes the land value of MVR 7.7 billion and MVR 3.3 billion in loss of revenue generation by using the land for commercial purposes.

It was also noted that the government has made necessary settlements for these losses, including the allocation of two lagoons – Galufalhu and Maagirifalhu – as compensation for the revenue losses to HDC – with the lagoons reportedly worth MVR 3.3 billion.

Additionally, the government has instructed HDC to come to an arrangement with the Ministry of Finance for making settlement of land costs of MVR 7.7 billion.

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