Housing Development Corporation (HDC) has terminated its agreement with the operator of Riveli Beach Club & Restaurant in Hulhumalé and ordered the business to cease operations, citing years of unpaid rent amounting to approximately MVR 5 million.
The decision, which took effect on Monday, 2 November, brings the land occupied by the popular beachfront restaurant at Ruggandu 1 back under HDC’s control.
In a statement, HDC confirmed that its commercial agreement with Solaris Hospitality Private Limited, the company operating Riveli Restaurant, had been terminated following repeated failures to meet contractual obligations.
The corporation said Solaris was no longer authorised to conduct business or provide services at Hulhumalé Lot No. 10877, where the restaurant is located.
An HDC official told Mihaaru that the company currently owes approximately MVR 5 million in outstanding rent, with payments having been irregular since the beginning of the agreement.
According to the official, Solaris had also failed to fulfil the corporate social responsibility (CSR) commitments included in its agreement with HDC.
Despite receiving formal notices demanding payment, the company reportedly settled only a small portion of its outstanding dues.
The official said the restaurant had continued operating for years without consistently paying rent, even as HDC underwent changes in management under successive administrations.
The corporation’s decision to reclaim the property follows what it described as an extended period of engagement with the operator over its failure to comply with the agreement.
HDC said all required notices had been issued and the company had been given multiple opportunities to resolve the matter before the agreement was terminated.
The corporation maintained that repossessing commercial properties was not a decision taken lightly, particularly when businesses had established operations and were providing services to the public.
It said such action was taken only after exhausting the opportunities available to operators under their respective agreements.
HDC also reiterated its commitment to maintaining a supportive environment for businesses operating in Hulhumalé, while ensuring that contractual obligations are fulfilled.
Riveli Beach Club & Restaurant has been a familiar establishment along the Hulhumalé beachfront, an area that has developed into a popular destination for dining and recreation among residents and visitors.
The termination comes amid longstanding concerns over unpaid rent owed to HDC by tenants occupying commercial properties and residential flats in Hulhumalé.
Rent arrears have remained a recurring issue for the corporation, which is responsible for managing and developing significant areas of Hulhumalé, including land allocated for commercial and residential purposes.
The latest action highlights HDC’s efforts to recover outstanding payments and enforce the terms of agreements governing properties under its management.
With the agreement now terminated, Solaris Hospitality Private Limited has been instructed to discontinue all commercial activities at the premises, which HDC says have been returned to its control.
