Okanda Finance case: Fixed for support on June 22

Wasantha RAMANAYAKE

The Supreme Court yesterday fixed for support the rights application filed by a group of depositors of the Okanda Finance Ltd. for June 22. The Senior State Counsel for the Attorney General moved for time to obtain instructions.

The Court also issued notice on respondents sequel to an application made by the counsel for the petitioners.

The Bench comprised Acting Chief Justice Dr. Ms. Shirani Bandaranayake, Justice P. A. Rathnayake PC and Justice S. I. Imam.

Senior State Counsel Harsha Fernando appearing for the Central Bank submitted that the Central Bank had taken steps to regulate the respondent Okanda Finance Ltd. since 2002 which were resisted by the respondents at each stage by means of litigations. Answering the court the senior state counsel submitted that respondent finance company has not yet registered with the Central Bank.

Counsel J. C. Weliamuna for the petitioners submitted that the respondents have neither paid depositors a cent nor have such a repayment plan.

Petitioner V. Nimal, Orutota, Gampaha and nine others who are depositors of the Okanda Finance cited the Monetary Bord of Central Bank, Governor of the Central Bank, Non- banking Financial Department Supervision Director S. S. Ratnayake, Internal and International Commerce Ministry Commerce Department Assistant Director D. W. Jinadasa, the Secretary to the Finance Ministry, Okanda Investment (Pvt.) Limited, Okanda Finance Limited, Director M.B. Okanda Silva, Managing Director M.B. Dhanapala, the IGP and the Attorney General as respondents.

The petitioners challenge the inaction and the inordinate delay and the failure of the Central Bank to take appropriate steps to exercise sufficient control over business in particular Okanda Finance and refused to repay money deposited by them. They stated that 1-5 and 10 respondents did not promptly and expeditiously exercise the powers vested in them.

The petitioners stated that respondent Okanda Finance Ltd. through advertisements created the impression in the minds of public that they accept deposits. However, when they deposited money they were given loan agreements instead of deposit certificates.

The petitioners stated that the Central Bank initially commenced investigations into the Okanda Finance Limited in August 2002.

They stated that although the Attorney General filed a case in the Magistrate Court in respect of carrying out unauthorized business, the public were informed only in September 2009 that business conducted by Okanda Finance was unauthorized. The petitioners stated that on April 4, 2009 the Central Bank informed the public that Okanda Finance was directed to repay deposits and they had a legal expectation that they would get their deposits back. The petitioners stated that Okanda Finance filed an application to wind up the company without any repayment scheme as directed by the Central Bank.

They sought an interim order to appoint a committee comprising 1-5 respondents to supervise, regulate, control and to prevent the selling of property or otherwise disposing of property and assets belonged to the seven to nine respondents.

Counsel J. C. Weliamuna instructed by Lilanthi de Silva appeared for petitioners.

Senior State Counsel Harsha Fernando appeared for the AG.

The application was put off for June 22.