The Supreme Court has quashed the High Court order to to halt the Gulhifalhu reclamation project.

The order pertains to the case filed with Civil Court by environmental activist Humaida Abdul Ghafoor seeking a halt to the Gulhifalhu project, citing irrevocable damage to the environment.

In her appeal at the Civil Court, Humaida said that the reclamation project includes 'Kiki Reef', a rich ecological system of underwater life that has been protected since 1995, which will be wiped out if the project continues as planned.

She further said that the Maldives was debt-ridden and facing a financial crisis, and the USD 300 million project would cause irreparable damage. She sought an interim injunction to halt the project.

However, Civil Court denied an injunction to halt the project, stating that the project is part of the government's Strategic Action Plan, which aims to address the current obstacles and constraints at Male' Port to boost the economy of the Maldives. The government will have to pay a large amount of compensation if the project is halted after a long time due to the completion of phase I and phase II, Civil Court said.

Humaida appealed the decision with the High Court.

When the matter was referred to the High Court, the court ruled that the defense had not produced any evidence to negate the fact that the work would cause serious damage to the environment due to violation of the standards prescribed in the Environmental Impact Assessment (EIA). In that case, action should be taken under the precautionary principle to protect the environment.

Failure to grant an interim injunction in the case could cause irreparable harm to the petitioner, the public and future generations, the judgment said, adding that the environmental damage if the project goes ahead far outweighs the financial losses to the state.

A three-judge bench of presiding judges, presided over by Justice Mohammed Shaneez Abdullah and Justice Huzaifa Mohammed, ordered the dredging work to be suspended until the case is resolved in the Civil Court.

Justice Mohammed Niaz however disagreed, noting that it was not a matter for further consideration by the High Court.

The Ministry of Construction and Infrastructure and the Ministry of Climate Change and Environment appealed the High Court order in the Supreme Court.

The Supreme Court today ruled that the High Court's order to halt the dredging of Gulhifalhu was in violation of the rules prescribed by the Supreme Court on issuance of interim orders.