The suspects included former Housing Development Corporation managing director Ibrahim Fazul Rasheed, his brother Mohamed Fazeel Rasheed, HDC board members, Deputy Housing Minister Azuhar Abdullah Saeed and several political appointees. 

But the investigation is ongoing, according to the police media team, which declined to reveal the reason for releasing the withheld passports. 

The scandal broke in December with the leak of internal HDC documents. Fazul was accused of allocating prime plots of land from Hulhumalé phase two to his brother Fazeel, deputy managing director of the Malé Water and Sewerage Company. Both were promptly suspended and placed under investigation along with several HDC and housing ministry officials. 

Fazul denied any wrongdoing. It was a “coincidence” that the beneficiaries included his brother Fazeel, the former lawmaker told the press. 

Fazeel had been deemed ineligible for land plots under the Binveriya scheme. But according to the leaked documents, Fazeel sought a permit from the HDC to build a boundary wall in June 2024. The request was made with a forged registry claiming ownership of the plot of land. 

But a man named Abdul Majeed Mahir also requested permission to build a boundary wall on the same plot. As a registered resident of Haa Alif Dhidhdhoo, Mahir was not eligible for plots under the scheme either. The Binveriya scheme offered land exclusively to native residents of Malé.

To clarify the disputed ownership, HDC sent a letter to the housing ministry for verification. The leaked documents, including the correspondence and forged registration certificates, emerged on social media five months after the ministry’s response.

Amid mounting public outrage and calls for his sacking, Fazul resigned on December 21. A day later, police raided his residence and seized MVR 1.4 million (US$ 90,790) in cash. But the money was reportedly returned in February.