SC orders to sell hospital, hotel belonging to Ceylinco
To recover Golden Key Credit Card company depositors'
money:
Wasantha RAMANAYAKE
The Supreme Court yesterday ordered Golden Key ENT Hospital and Hotel
Sea Sands belonging to Ceylinco Consolidated Group to be sold to recover
money to repay money belonging to Golden Key Credit Card Company (GKCCC)
depositors.
This order was sequel to an application by Attorney General Mohan
Peiris PC who sought court approval for certain recommendations by court
appointed three-member committee to recover money for the second phase
of the repayment plan.
Under the second phase, those who had deposited less than two million
rupees will be paid 75 percent of their principal amounts within six
months.
The Bench comprised Justice Shiranee Thilakawardane, Justice K
Sripavan and Justice Chandra Ekanayake.
The Court also appointed Charted Accountant Mangala Boyagoda to
assist court in identifying other assets of GKCCC and to properly manage
and dispose already identified assets to expedite the repayment process.
Court also ordered to sell personal assets of GKCCC head respondent
Kavan Perera and to credit the money to the special fund to be
established for repayment.
Court cancelled a share transaction amounting to five million rupees
by Janaka Ratnayake and directed that he should not serve on the
Director Boards of Ceylinco group and Merchant Bank of Sri Lanka in view
of the transaction.
Court ordered the Criminal Investigation Department to investigate
and report to court of a teak plantation at Gokarella belonging to GKCCC.
The Attorney General also informed court that he would initiate
criminal proceeding against the GKCCC directors before the end of the
year.
According to the repayment plan approved by the Court, depositors
with less than one million rupees were paid 75 percent of the principal
amount.
Supreme Court had earlier appointed three charted accountants to the
Golden Key Committee, that would ultimately be responsible for the
disbursement of the deposits in the GKCCC.
The petitioners, depositors of the Golden Key company cited 17
respondents including the Monetary Board of the Central Bank, Central
Bank Governor, Treasury Secretary, Golden Key Company, Lalith
Kothelawala, Kavan Perera, Sicille Kothalewala, 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 become aware of the company directors being
involved numerous illegal activities using depositors' money.
They pointed out that the company had misappropriated around 26
billion rupees of the depositors.
The petitioners stated that the Monetary Board's failure to supervise
and control activities of the respondent company were in violation of
their rights.
Attorney General Mohan Pieris PC appeared for the Central Bank.
M A Bastiansz with Sudath Jayawardane appeared for the petitioners.
Further hearing was put off for October 27. |