High Court has ordered a stay on the payment of GST by the state, which was awarded by the Civil Court in connection with the Dharumavantha Hospital construction project.
The 25-storey building was contracted to China’s Chang Hua Construction Company for USD 140 million (MVR 2.1 billion) during former President Abdulla Yameen’s administration. The company filed a lawsuit in the Civil Court, which ruled that the Maldives government should pay the GST.
The judgment ordered the state to refund MVR 227,000 in GST that Chang Hua had already paid. In response, the Attorney General’s Office appealed the ruling in the High Court and requested a stay on the execution of the judgment.
High Court issued an order stating that if the ruling was not stayed, it could obstruct justice. As a result, the court ordered that no action be taken on the Civil Court’s verdict until a final decision is made on the appeal.
Following the High Court's stay order, the Civil Court dismissed the case yesterday, ruling that the judgment could not be enforced at this time.
According to the Civil Court ruling, the project cost was USD 140 million excluding GST, as per the terms of the agreement. Therefore, the responsibility for paying GST should fall on the Government of Maldives.