High Court orders that Finance Ministry does not owe Global Wings Pvt Ltd USD 13,296,487.

Global Wings and Finance Ministry signed an agreement on 15 December 2011 to develop water and sewerage network in HDh. Nolhivaram, sewerage network in HDh. Neykurendhoo, and develop a resort in Noonu Atoll.

Global Wings said that the company completed the required surveys and submitted BOQ and project plans to the Ministry along with detailed designs but did not receive any support from the Ministry since April 2012.

The company has previously stated that they were facing losses as Finance Ministry did not terminate the agreement or provide necessary support to the project. As such, Global Wings filed a case against Finance Ministry to seek an order to restore the agreement and seek compensation for damages. Civil Court however ordered there were no grounds for the company to seek compensation.

Global Wings appealed the Civil Court decision on 2 September 2019 at High Court, stating that the decision was taken unlawfully and the decision that the agreement was void is inaccurate.

At High Court, the State argued that due to the changes to the CSR policy, agreements with private companies were terminated and Global Wings was informed as well.

The State further highlighted that Global Wings was offered alternatives to the agreement, which the latter agreed to after some changes. The State added that since Global Wings had been working on the alternative projects, the company is not owed any compensation for the initial agreement.

High Court upheld Civil Court decision that Global Wings was not owed compensation of USD 13,296,487.