Housing Development Corporation (HDC) has terminated its commercial agreement with Solaris Hospitality Private Limited, the operator of Riveli Beach Club and Restaurant in Hulhumalé, and ordered the business to cease operations.
The decision took effect on 2 November, bringing Lot No. 10877 in the Ruggandu 1 area back under HDC control. The restaurant is the only establishment permitted to operate in such close proximity to the beach in Hulhumalé.
HDC stated that the termination followed a prolonged period of unpaid rent. Officials said the company owed approximately MVR 5 million, with payments irregular since the start of the agreement. The operator had also failed to meet corporate social responsibility commitments.
Before reaching the decision, HDC issued all required notices and provided multiple opportunities for the company to settle the arrears in accordance with the agreement terms.
In its announcement, HDC informed that Solaris Hospitality is no longer authorised to conduct any business or provide services at the site.
Despite the announcement, reports indicated the restaurant remained open and continued serving customers the following day.
