Payment to Golden Key depositors:

AG submits proposal to Court

Wasantha Ramanayake

Depositors with less than one million rupees will be paid 75 percent of the principal amount within three months, submitted Attorney General Mohan Pieris PC tendering a comprehensive payback plan of the Golden Key depositors to the Supreme Court, yesterday.

Attorney General Pieris submitted that those who had deposited less than two million rupees would be paid 75 percent of their principal amount within six months and those over two million would be paid within one year.

However, President’s Counsel Romesh de Silva appearing for respondent Ceylinco Group Chairman Lalith Kotelawala submitted that he had not received a copy of the plan and moved to obtain the same. Accordingly the court directed a copy be given to the counsel and granted time till October 13 , to express the concerns of the respondents.

Attorney General Pieris outlining the payment plan submitted that 110 million rupees could be credited to the Golden Key dedicated fund established under the direction of the court to pay the depositors, from the savings of the respondents Lalith and Sicille Kotelawala. He added that another 240 million could be credited to the fund from the consolidated accounts and Rs. 2.6 billion by selling the assets belonging to the Ceylinco Consolidated Limited.

The Bench comprised Justice Ms. Shiranee Thilakawardane, Justice K. Sripavan and Justice P.A. Ratnayake.

The court on the last occasion directed the parties in the Golden Key rights case to convene a meeting presided by the Attorney General to expedite the payments beginning from the depositors who had deposited less than Rs. One million at the Golden Key Credit Card Company.

The petitioners, depositors of the Golden Key company cited 17 respondents including the Monetary Board of the Central Bank, the Governor of the Central Bank, the Secretary to the Treasury, Golden Key company, Lalith Kotelawala, Khavan Perera, Sicille Kotelawala, the Ceylinco Consolidated Pvt. Ltd. and the Attorney General. The petitioners complained that the respondent company first stopped the payment of interest on deposits and then the depositors were not allowed to withdraw their deposits, without giving any reason.

They stated that they have learnt that the company directors had involved themselves in numerous illegal activities using the money of the depositors. They pointed out that the company had misappropriated around Rs. 26 billion of the depositors.

The petitioners stated that the failure of the Monetary Board to supervise and control the activities of the respondent company in violation of their rights.

M.A. Bastianz with Sudath Jayasundera appeared for the petitioners. Attorney General Mohan Pieris PC appeared for Monetary Board of the Central Bank.

Romesh de Silva PC appeared for Lalith Kotelawala. The case will be taken up on October 13.