SC: Return Water’s Edge land to UDA

Former President ordered to pay Rs. 3 m to Govt.:

Wasantha RAMANAYAKE

COLOMBO: The Supreme Court yesterday in a landmark judgment annulled the Water’s Edge transaction in its entirety.

The court held that former President Chandrika Bandaranaike Kumaratunga, the Head of the then Cabinet was responsible for the issuance of the Cabinet Memorandum that initiated the entire transaction was ordered to pay Rs. Three million as compensation to the State. She was ordered to deposit the money with the Court Registry, before January 31, 2009.

”We believe such a token payment of the real loss to the State of several hundreds of millions should serve to remind present and future State actors and agencies is of their paramount duty to further the Public Trust and that their actions are subject to the Rule of Law,” noted Justice Ms. Shiranee Thilakawardane delivering the judgment with Chief Justice Sarath N. Silva PC and P.A. Rathnayake agreeing.

The delivering of the judgment in the Fundamental Rights application filed by two petitioners in public interests the court noted that the entire transaction from the transfer of land meant for public purpose to the subsequent removal of the development restrictions was the result of actions, the omissions and

the decisions made in violations of the Public Trust. The court ordered that the 225 acres of land be reverted to the Urban Development Authority within one month. Also the UDA was ordered to pay back the cost of construction as at the time of the construction as per the valuation of the Chief Valuer of the Government Valuation Department. According to the order the Asia Pacific Golf Course Ltd. is permitted to remove movable property and the vacant possession free of any encumbrances to be handed over to the UDA in four months before February 08.

The cost of the filling and the development of 7 hectare extent of land to be given to the Kaduwela Pradeshiya Sabha that developed the block and the money are \to be used for the any public purpose.

The court also ordered the Bribery Commission to immediately conduct a inquiry into the entire transaction.

The court also ordered the UDA and two other Government entities Central Environment Authority and the SLLR &DC to tender the court a master plan that makes use of the land for locating government agencies as means of decentralization of the Colombo City, at the same time allocating maximum possible extent of lands for the flood retention purposes. The court also held that the fifth respondent Ronnie Pieris procured favours of the executive in violation of the doctrine of the Public Trust thereby violating the rights of the petitioners and the people of the country. The court ordered Ronnie Pieris to pay two million rupees as compensation to the state before January 31, 2009. Further, 9, 10, 11 respondents were ordered to pay one million rupees each as compensation to the State. The court ordered a sum of Rs. 500,000 to be paid to the each of the petitioners and Rs. 100,000 to each of intervenient petitioners in equal proportions..

The court ordered the Bribery Commission to investigate an alienation of a plot of land at Narahenpita to Lifestyle Health Service.

The court noted that the Ronnie Pieris profited through the transaction through carefully concealed ownership of Asia Pacific Golf Course Pvt. Ltd.

He had held shares of the company through a trust arrangement. The court noted that the Peiris was the beneficial owner of 600, 200 shares of Asia Pacific having an amount of Rs 57 million equal to the profits derived by the sale of the Asia Pacific Golf Course Ltd. to the Access Holdings.

Petitioners Sugathapala Mendis of Panadura and Raja Melroy Belassius Senanayake complained to the court that the 225 acres of land in Battaramulla which had been acquired by the UDA for public purpose were alienated to Asia Pacific Golf Course Ltd. to construct a Golf Course which levies Rs. 250, 000 for a member and a resort that were not beneficial to the general public in violation of their rights as well as the rights of the people of the country.

J.C. Weliamuna appeared for the petitioner.

President’s Counsel K.Kanag Ishwaran appeared for the first respondent.

President’s Counsel D.S. Wijesinghe, Romesh de Silva, Mohan Pieris and Counsel Nihal Jayawardane, Uditha Egalahewa and Senior State Counsel Nerin Pulle and Rajiv Gunathilake appeared for the respondents.