Afcons Infrastructure, who was fined MVR 69.4 million due to the damage caused by the company’s ‘Yuvraj’ platform to the Vilimalé reef during the ongoing construction of the Thilamalé Bridge, is preparing to file a civil suit against the Environmental Protection Agency (EPA) over the penalty.
After the EPA fined Afcons, the company asked for the decision to be reviewed. Following a review by the ministry, the then minister Aminath Shauna decided not to waive or reduce the fine.
Afcons then chose to apply for an interim injunction against the EPA and the relevant ministries to suspend the payment of the fine and prevent any action in connection with the fine—a right granted to plaintiffs under the current Civil Procedure Act.
The company told the court that the platform damaged the reef due to ocean conditions beyond their control, not due to negligence. The EIA report acknowledged that the reef could be damaged as a result of the Thilamalé Bridge project and a subsequent assessment failed to mention any negligence on the part of the company, Afcons pointed out in the court, saying that a fine was being imposed without proof of negligence on the company’s part.
In response to Afcons application, the state attorneys told the court that there was no legal basis for an interim order in the case. They said the “reputational loss” that Afcons could suffer as a well-known company is not a circumstance that warrants an interim order.
The Judge, Zulaikha Sheeza, cited this as one of the reasons why she decided not to grant the order as applied for by Afcons. In her ruling on the interim order she wrote that, “While even Afcons had not identified any reason why the matter warranted immediate action, it had also not addressed why the order was necessary for the administration of justice.”
Another factor noted by Afcons was the possibility of the canceling of the agreement and subsequent impact on the company’s cash flow. However, the judge noted that the company had not outlined how these circumstances might come about.
Afcons’ Yuvraj platform ran aground the reef due to a technical problem with the anchoring mechanism. The platform could only be removed from the area 12 days after its grounding. The damage to the area was surveyed and large 10 feet deep gaps were observed.