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Government Gains Power to Repossess Council Land

by Mohamed Asif
September 1, 2026
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Government Gains Power to Repossess Council Land
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President Dr Mohamed Muizzu has ratified an amendment to the Decentralization Act granting the government authority to repossess land and other areas under island and city councils for state development projects.

The amendment was passed by Parliament during the 28th sitting of the second session of the 20th parliamentary assembly on August 26, with 47 votes from ruling PNC lawmakers. Opposition MDP lawmakers voted against the bill.

The legislation was passed without considering petitions submitted against the bill in its current form.

Under the amended law, once the Cabinet decides that a specific area within a council’s jurisdiction is required for a state development project, ownership of the land will be transferred from the council to the state.

The government will also be able to repossess land before the physical development plan of the respective island has been finalised and implemented.

An amendment introduced during the parliamentary committee stage requires the relevant ministry to compensate for investments already made on land that is repossessed for a government project.

The amendment also introduces changes to the code of conduct for council members. Councillors will be required to cooperate with state development projects that are considered to serve the collective interests of the public.

The revised code prohibits councillors from obstructing such projects or making decisions to stop them without a justifiable reason.

According to the President’s Office, the amendment is intended to streamline the process of identifying and securing land required for national development projects.

However, the legislation has faced strong opposition from members of the opposition, who have described it as a “land theft bill.”

An amendment proposed during the parliamentary process that would have required public consultation before changes were made to an island’s jurisdiction was also rejected.

The changes have therefore expanded the government’s authority over land under local councils, while introducing new obligations on councils to cooperate with state development projects.

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