The Civil Court has ordered that land held by Mediterranean Film Studios is to be returned to the government after groundrent was not paid for several years, in breach of contract conditions.

The case was instituted by the Director of Lands against Mediterranean Film Studios, who held a large tract of land in Rinella in terms of a contract signed in 1995. The land had been granted on emphyteusis for 65 years.

It laid down, however, that the government had the right to dissolve the
emphyteusis  if the emphyteuta failed to pay the ground-rent for two
years.

The Director of Lands pleaded that no groundrent had been paid for 12 years.

The company was ordered to pay arrears of groundrent of Lm395,993 and to vacate the site within 40 days.