The Civil Court of the Maldives has ordered the state-owned Road Development Corporation to pay MVR 11.7 million to an Indian contracting firm to settle outstanding payments for heavy machinery and engineering services supplied for municipal infrastructure projects.
The ruling was delivered following dispute resolution proceedings initiated by the foreign contractor, which alleged that RDC failed to settle invoiced disbursements despite the delivery and deployment of contracted road-building equipment across multiple island development sites.
Judicial ruling and settlement timeline
According to court documents, the dispute involved supply agreements executed under previous project phases where equipment leasing and specialized engineering services were procured to pave urban streets in the capital and outer atolls.
The presiding Civil Court judge determined that the Indian company had fulfilled its contractual obligations and that RDC bore an undisputed legal liability to clear the outstanding debt:
"The court orders the Road Development Corporation to settle the sum of MVR 11,745,000 to the plaintiff within a specified period of three months, in accordance with the terms established in the commercial procurement agreement," the court stated in its judgment.
The judgment requires RDC to disburse the funds in scheduled installments or face judicial enforcement mechanisms against corporate bank accounts.
Fiscal strain on state enterprises
The ruling comes amid heightened government scrutiny of the financial health and liabilities of state-owned enterprises. RDC has faced persistent liquidity challenges stemming from delayed state subsidies and accumulated sub-contractor debts incurred during rapid infrastructure expansions over recent years.
RDC management confirmed that it is reviewing the judicial verdict with legal counsel to establish a manageable repayment schedule that ensures ongoing municipal road paving and storm drainage installations in Malé and regional atolls continue without interruption.
