The Civil Court has ruled that SGM Pvt Ltd must pay MVR 20.7 million to the government following the disappearance of over 1,000 boxes of cigarettes stored in a bonded warehouse under customs supervision.
The case centers on 1,060 boxes of cigarettes imported into the Maldives across two shipments on April 27 and June 4, 2018, which were subsequently stored in a bonded warehouse registered under SGM Pvt Ltd. According to customs documents, the goods were removed from the warehouse on September 20, 2018.
Authorities grew concerned after customs officers attempted to inspect the warehouse but were unable to gain access. Acting under a court order, officials conducted a search on December 29, 2024, only to find the shipment had vanished.
Records indicate the missing goods included 430 cases of American Legend cigarettes and 250 cases of Afzal Molses pipe tobacco. These products had originally been released from the Male' Commercial Harbor on April 5, 2018, before being transferred to the bonded facility in September.
SGM Pvt Ltd had issued a cheque to cover customs duties on September 20, but it was returned due to insufficient funds on September 25. Following this, customs authorities suspended all services to the company.
On February 4, 2024, customs formally demanded that the company pay MVR 20,720,412.54 within five days. Despite repeated notices, SGM Pvt Ltd failed to make any payment or respond to official summons.
As a result, the Civil Court delivered a judgment in absentia, ordering the company to settle the outstanding amount within 14 days. The court noted that SGM Pvt Ltd had not submitted any defense or contested the charges during proceedings.
The ruling underscores the government’s commitment to ensuring accountability for goods held under customs supervision. Officials stressed that bonded warehouse operators are expected to strictly comply with storage and reporting regulations to prevent losses or illegal removal of taxable goods.
