Malé, Maldives – President’s Office Chief of Staff Ali Zahir has appealed a lower court order requiring him to pay MVR 2.3 million to Mauritius Commercial Bank (MCB).
An initial notice by MCB, notifying Ali Zahir to pay an amount of MVR 2.3 million to the bank, was made in 2018 after he issued a cheque of the same value without sufficient funds in his account, resulting in the bank releasing the cheque amount as overdraft.
Ali Zahir issued the cheque after obtaining a document from the bank, confirming that MVR four million had been credited to his account. However, it was later revealed that the funds had not been credited to the account, and that the bank had issued the cheque’s value despite this, demanding Ali Zahir pay the bank back.
In the court case initiated by Ali Zahir at both Civil and High Courts, both courts ruled against him, declaring that the notice issued by the bank demanding Ali Zahir to pay the money back cannot be rendered void.
Following this, Ali Zahir appealed the case at the Supreme Court of Maldives this week. However, the court is yet to accept the case.
In the High Court’s verdict last June, both Judges presiding over the case concluded that banks have the authority to issue money despite a lack of funds in one’s bank account, but that the sum should be returned to the bank and that it is “not a free gift”.