Market redevelopment dispute intensifies as ministry says council ignored company’s request to cancel agreement

The Housing Ministry says the Male' City Council has not cancelled the agreement it signed with a private company to develop a modern market in the city, despite the company itself requesting termination.

The Council has previously cited the failure to hand over the land required for the project as the reason the market development agreement, signed on 9 March 2023 with Hairu Engineering Consultancy Pvt Ltd, could not proceed. The Council has said the land will be transferred to the Ministry only after the agreement with the company is cancelled.

In a statement issued on Sunday, the Ministry said it had received information from Hairu Engineering Consultancy confirming that the company had agreed to cancel the agreement without any conditions. However, the Ministry said the Council has not yet cancelled the agreement.

ނޫސް ބަޔާން : މާލެ ވެޓް މާރކެޓް ކޮމްޕްލެކްސް ތަރައްޤީކުރުމާ ގުޅޭ pic.twitter.com/Q8zoGpgf9E

— Ministry of Infrastructure, Housing and Urban Dev. (@MIHUDmv) June 21, 2026

The Ministry added that the government is carrying out the market redevelopment based on the design and plans prepared by the Council itself. It said the government must find a solution to the difficulties faced by the public, as the Council has not taken any steps to implement the project.

According to the Ministry, the company awarded the project by the Council has not carried out any practical work beyond constructing temporary stalls, and therefore there is no obstacle to terminating the agreement.

It is noteworthy that the Council has requested the Local Government Authority (LGA) to mediate the dispute between the Council and the Ministry, citing the Ministry’s refusal to meet, discuss the matter, or respond to its letters.

ވެޓް މާރކެޓް ތަރައްޤީކުރުމުގެ މަޝްރޫއާ ގުޅިގެން ނެރޭ ނޫސް ބަޔާން pic.twitter.com/gLuFVOV6e1

— Malé City Council (@MaleCitymv) June 20, 2026

The Council has maintained that it will continue to cooperate to ensure the project is carried out in the public interest and within the legal framework.