Maldives files lawsuit against India’s MM Export over Fushi Dhiggaru reef incident

The Maldives government has taken a significant step in seeking justice by filing a lawsuit against MM Export, an Indian company, over its failure to pay a fine of MVR 110 million for the Fushi Dhiggaru reef incident that occurred in 2015. Despite eight years of efforts to secure compensation, the company has not fulfilled its financial obligations, leading to legal action.

History of Repeated Offenses: MM Export’s Troubled Track Record

MM Export has been involved in several incidents involving the capsizing of tug boats and barges on reefs, raising concerns about its safety practices and environmental impact. The local courts had previously ordered the company to pay the fine of MVR 110 million, but it has consistently failed to comply, prompting the Ministry of Environment, Climate Change and Technology and the Environmental Protection Agency (EPA) to intervene. Despite being granted three extensions to settle the fine, MM Export has not made the required payment.

EPA lodged a case against MM Export

Following the company’s persistent non-compliance, the Environmental Protection Agency (EPA) lodged a case against MM Export with the Attorney General’s Office. In December 2022, the lawsuit against the company was filed at the Maldives Civil Court. An official from the Attorney General’s Office confirmed that the defendant has been given time to prepare for the trial.

The consequences of the Fushi Dhiggaru reef incident are significant, as an area measuring 4,370 square meters suffered damage due to the capsized barge. Moreover, another incident involving MM Export took place on the Haa Alifu atoll Dhihdhoo reef, where a tug boat and a barge owned by the company capsized. While the barge was successfully righted, the damaged tug had to be towed by another vessel from Malé. The Dhihdhoo Council has stated that the EPA will conduct an assessment to determine the extent of the reef damage caused by this incident.

It is worth noting that MM Export has a history of similar incidents. In 2014, one of their vessels capsized on the Kaafu atoll Thilafushi reef, resulting in a fine of MVR 2.8 million after a reduction from the initial MVR 22 million penalty. These repeated incidents raise concerns about the company’s adherence to safety standards and its commitment to protecting the delicate marine ecosystems of the Maldives.

While MM Export faces legal action for the damages inflicted on the reefs, another Indian company, AFCONS Infrastructure, has also been ordered to pay a fine for reef damages in Kaafu atoll Vilimalé. AFCONS was held accountable for a bridge platform accident that caused damage to the Vilimalé reef and was ordered to pay a fine of MVR 69 million. Despite the fine and subsequent appeals, the Maldives Minister of Environment, Climate Change and Technology, Aminath Shauna, has emphasized that the government has no intention of waiving the penalty, underscoring the commitment to protecting the country’s fragile marine ecosystems.

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