The Supreme Court of the Maldives has upheld earlier court rulings rejecting a USD 51.2 million compensation claim filed by Araam Travels Pvt Ltd against the state over the cancelled airport development project in Farukolhu, Shaviyani Atoll.

The case stems from a 2013 agreement under which the government awarded Araam Travels the contract to develop a domestic airport at Farukolhu. As part of the arrangement, the company was also granted a 50-year lease to develop a tourist resort on Innahuraa and several nearby islands.

The government cancelled the agreements in 2014, citing environmental concerns related to the airport project.

Araam Travels later sought USD 51.2 million in compensation, arguing that the cancellation caused financial losses. However, the Civil Court and High Court both ruled in favour of the state.

In its ruling issued last Thursday, the Supreme Court found no grounds to overturn the High Court's decision, bringing the long-running legal dispute to a close.