The State Bank of India has invited bids for the acquisition of the leasehold rights and associated assets of Maavelaavaru Island in Noonu Atoll, with a reserve price of USD 111.6 million established under a court-authorised loan recovery process.
According to a sale notice issued by the bank, the Civil Court of the Maldives granted permission to SBI’s Malé branch to sell the mortgaged property following a judgement delivered on 21 June 2026. The judgement relates to an enforcement case involving Athama Investments Private Limited and other parties.
Athama Investments Private Limited has been identified as the borrower, while the leasehold rights and assets of Maavelaavaru Island were mortgaged as security against financing facilities extended by the bank. The court-approved sale provides an opportunity for qualified investors to acquire a substantial island tourism asset within Noonu Atoll, one of the Maldives’ prominent resort development regions.
The sale encompasses the island’s leasehold rights together with its buildings, structures, machinery, equipment, furniture, fittings, stocks and other assets located on, attached to or available for use on the island. The comprehensive asset package could support the continuation, redevelopment or repositioning of the property as a high-value resort investment, subject to the applicable laws, tourism regulations and lease conditions of the Maldives.
Maavelaavaru Island’s location in Noonu Atoll enhances its potential as a tourism investment asset. Noonu Atoll has developed into an internationally recognised luxury tourism region, supported by the Maldives’ strong global destination brand, established resort development framework and continued government efforts to promote sustainable investment across the country’s atolls.
The bidding period commenced on 23 July and will remain open until 9 August. Interested parties are required to submit sealed proposals to the State Bank of India’s office in Malé. Each bidder must also provide an earnest money deposit of USD 500,000 as part of the submission process.
The earnest money deposits submitted by unsuccessful bidders will be refunded, while the deposit of the successful bidder will be applied towards the purchase price. The reserve price of USD 111.6 million will serve as the opening value for the bidding process, and the property will be awarded to the highest bidder who meets the required eligibility and submission conditions.
Should two or more bidders submit identical highest offers, the bank will conduct immediate spot bidding, with each subsequent offer required to increase by increments of USD 50,000. This arrangement is intended to ensure that the asset is awarded through a clear and competitive bidding procedure.
The successful bidder will be required to pay USD 10 million within 15 calendar days from the date of the award. The remaining purchase price must be settled within 60 calendar days. Failure to comply with the stipulated payment schedule could result in the forfeiture of USD 2 million, after which the bank may offer the property to the next highest qualifying bidder.
SBI stated that the auction will be conducted on an “as is where is” basis, meaning prospective bidders are expected to carry out their own legal, financial and technical assessments of the island, its leasehold rights and associated assets before submitting an offer.
The proceeds generated from the sale will be applied towards settling the outstanding loan account, applicable bank dues, legal expenses, property taxes and other related costs. Any remaining balance after the settlement of these obligations will be returned to the borrowers or guarantors in accordance with the applicable procedures.
The sale process demonstrates the implementation of established legal and financial mechanisms governing secured lending and asset recovery in the Maldives. It also presents a potential opportunity for new investment in the country’s tourism sector, supporting the government’s broader commitment to maintaining investor confidence, strengthening the financial system and facilitating the productive utilisation of tourism assets.
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