No bail for VAT scam suspect

Sandasen Marasinghe

COLOMBO: The Colombo High Court yesterday refused to grant bail to a chairman of two garment factories who was taken into custody for the alleged misappropriation of VAT funds.

Colombo High Court Judge Deepali Wijesundara refusing to grant bail to Sinnaiyah Subramanium chairman of Lotus Garments (Pvt) Ltd, Pethiyagoda and Upali Garments (Pvt) Ltd, Ja Ela, observed that the suspect was alleged to have misappropriated a large sum of money from public funds and there should be special reasons to grant bail to such suspects before serving indictment.

Further, the Judge observed that there was an ample possibility for such a suspect to flee the country.

Filing the bail application through Attorney Thejitha Koralage, petitioner Ponnasami Periya Thanemose, wife of Subramanium stated that her husband along with four others were taken into custody on March 29, 2006 by the Commercial Crime Investigation Division of the Criminal Investigation Department in connection with an alleged misappropriation of Rs. 3.57 billion of Income Tax Department funds.

The petitioner further said that her husband was produced the following day and was in remand custody since then. She said that her husband was an employer of 510 employees and it was difficult to run the business without him. His presence was essential for a discussion with a foreign company to obtain an order to supply garments worth of US $ 5.2 million.

State Counsel Sanjeewa Dissanayake objecting to granting bail stated that there were cases filed against the suspect before the Gampaha Magistrate Court and the suspect had evaded appearing before the Court.

State Counsel Sanjeewa Dissanayake appeared for the Attorney General while President’s Counsel Rienzie Arsakularatne and Attorney Wasantha Batagoda appeared for the petitioner.

Earlier the seven suspects including a senior officer attached to the Inland Revenue Department who had been remanded in connection with the VAT scam were further remanded till February 21, by Colombo Fort Magistrate and Additional District Judge Namal Balalle.

The Criminal Investigation Department (CID) is probing the massive VAT racket at the Inland Revenue Department.

Senior State Counsel Sanjeewa Dissanayake appeared for the Attorney General.

President’s Counsel Rienzie Arsacularatne instructed by Gowri Thavarasa appeared for the suspect.