Mounting public outrage over the illegal rental of government-subsidized Gedhoruveriya flats has prompted swift action from President Dr Mohamed Muizzu’s administration. The government has announced a full-scale inspection and enforcement campaign to identify and repossess social housing units being sublet at inflated prices — a move aimed at preserving fairness in the state’s most ambitious housing program to date.
The controversy erupted after it was discovered that several recipients of Fahi Dhiriulhun Corporation (FDC) flats in Hulhumalé had begun advertising the newly handed-over units for rent, just two weeks after the key distribution began. According to FDC, 78 recipients have so far received keys to their flats, with the first handovers taking place at Tower 14 of Amaan Udhares in Hulhumalé Phase 2.
Yet even before residents began moving in, rental listings with photos appeared across online platforms, offering two- and three-bedroom apartments at prices reaching MVR 25,000 per month — more than double the government-set rates of MVR 8,000 for two-bedroom units and MVR 11,500 for three-bedroom units, both inclusive of maintenance fees.
Public Reaction Sparks Government Response
The high rental advertisements sparked public anger, with many Maldivians expressing frustration that a program designed to help struggling families was being turned into a profit venture.
Prominent citizen and scholar Zamzam Farish voiced the collective sentiment in a widely shared Facebook post:
“It hasn’t even been long since people started getting the keys, and already some are renting out their flats for up to 25,000 rufiyaa. This is three times higher than the government rate. Such greed denies the underprivileged their basic housing rights.”
As Zamzam’s post gained traction online, calls grew for the government to take firm action — and within hours, the Ministry of Construction, Housing and Infrastructure, together with FDC, issued strong statements reaffirming their zero-tolerance policy on violations.
Minister Muththalib’s Statement: “Government Will Not Tolerate Misuse”
In an official post on X (formerly Twitter), Minister of Construction, Housing and Infrastructure Abdulla Muththalib declared that the government would cancel agreements and repossess flats being rented out illegally.
“These properties are distributed at subsidized rates, involving significant expenditure of public funds. Therefore, the government does not approve of these properties being rented out at high prices or being used by individuals other than the original recipients,” the Minister wrote.
He further confirmed that his Ministry, in collaboration with relevant agencies, will initiate an immediate inspection of social housing units to verify compliance with the terms of allocation.
“The government will take all necessary measures to reclaim properties being misused. The inspection process will begin soon”. Muththalib stated.
FDC Managing Director: “We Will Identify and Repossess Violating Flats”
Echoing the Minister’s stance, FDC Managing Director Hamdhaan Shakeel told The Standard that any recipients found subletting their flats in violation of the agreement would face termination of their contracts.
“These flats are intended for those living in the most difficult conditions. If the flats are rented out against the terms of the agreement, FDC will identify those responsible and repossess the units,” Shakeel said, emphasizing that the government will not allow “big businessmen to exploit public housing meant for vulnerable citizens”.
FDC’s Official Statement: Reinforcing Accountability
In a formal statement titled “Regarding the Rental of 4,000 Housing Units Developed by FDC,” the corporation underscored that subletting is a direct breach of the rental and ownership contract signed under the Gedhoruveriya Scheme.
The statement read:
“FDC has received information that some parties are attempting to rent out units that have been allocated under the Social Housing Scheme. This is a violation of the agreement between FDC and the recipients”.
“Recipients of units do not have the right to rent out these units to others before fully paying off the amount due. The flats are meant for the recipients to live in. If a violation is found, FDC will investigate and take action as per the agreement”.
The corporation reiterated that it will “continue to work towards achieving the objectives of the Social Housing Schemes and operate these programs in a way that benefits the rightful beneficiaries.”
Agreement Clauses: Subletting Strictly Prohibited
The Agreement for Unit Rental and Ownership between FDC and tenants clearly prohibits subleasing:
- Clause 13.1.4 (Tenant’s Assurance): “The tenant assures that the rented unit will not be sublet to another party and that they will act in accordance with the bylaws.”
- Clause 14.8 (Rules for Unit Usage): “If the lessor receives a complaint alleging that the leased unit has been sublet in violation of clause 13.1.4, the lessor has the authority to investigate and take action.”
These provisions grant FDC the legal authority to cancel agreements, reclaim misused flats, and reassign them to eligible applicants still awaiting housing.
Government’s Broader Effort: Restoring Fairness in Social Housing
The crackdown on Gedhoruveriya subletting follows similar issues reported in Hiyaa and Vinares housing projects, where flats have been rented out at three to four times the official rates. Despite the government reducing Hiyaa rents to MVR 4,984, listings continue to appear online for MVR 15,000–18,000.
Minister Muththalib has made clear that such exploitation undermines the nation’s social justice goals.
“These homes were built for Maldivian families — not for profit. The government will ensure that every public housing project fulfills its true purpose” he said.
The administration’s decisive intervention, driven by public pressure and growing citizen awareness, reaffirms President Muizzu’s commitment to upholding fairness, integrity, and transparency in state welfare programs — ensuring that the promise of affordable housing remains a right, not a privilege.
