Civil Court Orders FAM to Repay MVR 1.5 Million to STO

The Civil Court has ordered the Football Association of Maldives (FAM) to repay MVR 1.5 million to the State Trading Organization (STO), following a breach of contract related to the “STO South League.”

The judgement was issued on Sunday. The agreement between FAM and STO, signed on 18 October 2022, aimed to launch the southern edition of FAM’s Dhivehi League. STO, as the title sponsor, provided MVR 1.5 million in sponsorship fees. However, the league was never held, violating the terms of the agreement. STO subsequently filed a civil lawsuit seeking the return of its sponsorship fee.

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FAM did not attend court proceedings, failing to collect the chargesheet and supporting documents. The court interpreted this absence as an implicit denial of the charges.

According to the claimant, STO disbursed the sponsorship fee in three payments, which were credited to FAM’s bank account.

STO requested the court to consider only the evidence presented with the chargesheet and sought the full amount of compensation.

FAM had notified STO that the tournament would commence on 4 December 2022, but the event never took place, and FAM failed to provide updates regarding rescheduling. STO sent a formal letter on 29 October 2023, requesting written confirmation of the new tournament date, but FAM did not respond. On 6 December 2023, STO issued a termination letter, demanding the return of the sponsorship fee.

The court ruled in STO’s favour and ordered FAM to repay the MVR 1.5 million by 15 September 2024.