Saturday, July 28, 2012

BML entitled to deduct the Sultans sum from Reethi Rah account: Court

Reethi Rah Resort Private Limited's case against Bank of Maldives (BML) for deducting more than MVR20 million from Reethi Rah Resort Private Limited, which Sultans of the Seas had not been repaying to BML, has been settled in favor of the bank. Reethi Rah resort is among the guarantors of the loan taken by Sultans. Sultans of the Seas is affiliated with the family of Dhivehi Rayyithunge Party (DRP) leader Ahmed Thasmeen Ali.

Reethi Rah previously stated that it had not been informed of the deductions prior to it and that MVR2,753,168.50 had been deducted from one of its accounts while USD1,149,240.48 had been deducted from another account, both of which adds up to a total of MVR20,474,456.70.

Reethi Rah resort filed a case at the Civil Court as BML had deducted the money from their account on June 25. Reethi Rah had requested a temporary order to refund the sum but the court decided not to issue such an order. Judge Abdulla Jameel Moosa earlier dismissed the request citing that such an order could have a decisive effect on the original case filed; hence such an order cannot be issued by the court.

The Civil Court ruling states that the amount was deducted from Reethi Rah Resort Private Limited in accordance with the guarantor agreement to the credit facilities for Sultans of the Seas. It also states that according with the agreement Reethi Rah Resort Private Limited assets were within the rights of the Bank.

The court stated that the deductions to its account cannot be revoked according to the agreement between the bank and Reethi Rah Resort Private Limited.

The court sentence stated that the court does not recognize any grounds upon which it can order the court to reimburse the deducted sum from the two accounts.

The cases of the MVR600 million loan granted to Sultans of the Seas payable to BML is in court at present.
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