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SC orders to sell hospital, hotel belonging to Ceylinco

To recover Golden Key Credit Card company depositors' money:

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.

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