The government revoked the lease of Minaavaru Island in Noonu Atoll, citing breaches of the agreement by Sun Travels and Tours, the Ministry of Agriculture and Animal Welfare has clarified. The ministry announced the decision after repeated warnings and multiple opportunities for the company to rectify the violations.
The lease, granted for a 21-year term, took effect on 6 February 2010. Sun Travels, the lessee, is affiliated with Ahmed Siyam Mohamed, a businessman and Member of Parliament for Meedhoo.
Under the agreement, the island was designated for agricultural activities and value-added processing, with the expectation that goods would be produced and marketed through value addition. Yet, ministry officials reported that monitoring visits found no evidence of such production or processing, a clear violation of the lease terms.
Concerns over non-compliance prompted repeated warnings from the ministry. On 19 March, Sun Travels was given 30 days to address the violations and bring its operations in line with the stipulated terms, the ministry said. The deadline passed without corrective action. In response, the government moved to reclaim the island, formally notifying the company of the lease termination on 5 May, the ministry clarified.
Ministry officials cited the company's failure to fulfil its contractual obligations as the basis for the revocation. Rather than engaging in the prescribed agricultural and value-added processing activities, according to the ministry, operations on the island had primarily focused on producing various items for Sun Travels' resorts.