Housing Minister Abdulla Muttalib has stated that flats allocated under social housing schemes must not be rented out or given for free to any other party for residence, and that this practice will be stopped, even if it requires amending the law. Less than two weeks after the Gedhoruveriya flats began to be handed over, some flats have already been advertised for rent. Three-bedroom units, for instance, have been advertised for rent at prices between MVR 25,000 and MVR 30,000. Amidst criticism regarding this issue, Minister Muttalib, speaking at a press conference held today at the President’s Office, said that Housing Development Corporation (HDC) and Fahi Dhiriulhun Corporation (FDC) are working to identify individuals who are renting out flats.
Emphasizing that the government considers this a very serious issue, Muttalib further stated that flats provided under government housing schemes are allocated based on people’s living conditions for the purpose of residence, and that renting out these places for commercial value or even giving them for free to another party is unacceptable. The Minister also said that efforts would be made to find a solution through legal amendments. “It should not be given to another party, even for free, to live in. It is a place given based on the circumstances of that family. That family must live there. No one other than that family should live there. Therefore, based on this principle, we believe that we can take action. If it is necessary to amend the law to do so, by the will of Allah, we will work to do so by bringing about that amendment,” Muttalib said.
Minister Muttalib also publicized the clauses in the agreement between the recipients of Gedhoruveriya flats and FDC, which stipulate that the flats cannot be rented out to a third party. According to the agreement, it is prohibited for the party renting the flat to sublease it to a third party. Furthermore, if FDC receives a complaint alleging that a flat has been rented out to another party, the corporation reserves the right to take action. FDC also warned yesterday that these flats, intended for those most in need of housing, would be reclaimed if they are rented out in violation of the agreement.
Some flats handed over under the Gedhoruveriya scheme have already been advertised for rent. However, under the agreement made between the flat recipients and FDC, renting out these flats is prohibited. The agreement states that doing so could lead to the flat being repossessed. While a three-bedroom flat has been advertised for a high rent, the government has set the rent for such a unit at MVR 11,500. This means the advertised rent is MVR 13,500 higher than the government-stipulated rent.
