Audit Office has revealed that Housing Development Corporation (HDC) will suffer a loss of MVR 11 billion due to the previous Government's 'Binveriya' scheme.

The budget review released by Audit Office last year estimated HDC will suffer a loss between MVR 7.2 to MVR 10.5 billion due to loss of land to 'Binveriya' scheme and MVR 3.3 billion in revenue from the land allotted in the scheme.

According to Audit Office, HDC have been given Galufalhu and Maagirifalhu as a compensation.

The report also stated that discussions are underway with Finance Ministry to recover the MVR 7.7 billion loss for HDC.

The Audit Office report stated that the State would suffer huge financial losses due to the allotment of free land plots from the most expensive area in the country, and the burden will have to be borne in the years to follow.

A total of 1,000 plots were allotted in Hulhumale' under the 'Binveriya' scheme launched by former president Ibrahim Mohamed Solih.