VAT scam: Colombo HC judge orders sealing of two buildings

Suraj A Bandara and Kumudu Hettiarachchi

Colombo High Court Judge Kumuduni Wickramasingha yesterday ordered the sealing of two buildings situated at Second Cross Street, Pettah which belong to the 10th suspect, a businessman in custody, in connection with the Rs.4 billion VAT scam.

The suspect was sentenced to 13 months rigorous imprisonment with a fine of Rs.100 million when he pleaded guilty to involvement in the VAT scam of the Inland Revenue Department.

The judge further sentenced the suspect to serve an additional two years in jail if he failed to pay the fine. The lawyer appearing for the accused, Rienzie Arsakularatne requested court to seal the two buildings as his client cannot afford the fine.

Deputy Solicitor General Buwaneka Aluvihare pointed out that if someone who is accused of violating the Public Property Act can not afford to pay the fine, his belongings can be confiscated in lieu of the fine.

He further requested to issue an order under Assessment rate of 164 and 168 of property confiscation to confiscate his two business centres and inform the Colombo Land Registrar about the decision. Accordingly, the court ordered to inform the Colombo Land Registrar and confiscate his belongings.

The case was heard following the complaint filed with the Criminal Investigations Department (CID) in 2006 regarding a fraud of almost Rs 4 billion which had occurred in the Inland Revenue Department between 2002 and 2004.

Following investigations, the CID filed cases against 14 suspects in the Colombo High Court and while six suspects were arrested over fraud allegations eight are said to be absconding abroad.