Confusion has arisen over transactions of companies carrying the Ceylinco name including Ceylinco Insurance following the Supreme Court’s interim order restraining the transfer or transacting assets of the Golden Key Credit Card Company Ltd, its subsidiary and ‘related entities’.
This came to light after the Commissioner General of Motor Traffic acting on instructions issued by the Attorney General, refused to transfer a vehicle by a company, unrelated to Golden Key, functioning under the Ceylinco Consolidated umbrella.
 Officials said the Department of Motor Traffic has decided not to transfer vehicles and entertain any transaction involving any Ceylinco company group after seeking the Attorney General’s advice on the interim order.
The Supreme Court, in its order in March, directed the relevant authorities such as Registrar General of Lands , Registrar of Motor Vehicles and the Securities and Exchange Commission of Sri Lanka that any transaction that has the effect of transferring of/ or transacting assets of the Golden Key Credit Card Company Ltd, its subsidiary and associate companies, directors and key management personnel of the GK Credit Card Company and other related entities should not be given effect .
When contacted by the Sunday Times FT, the Commissioner General of Motor Traffic B. Wijeyaratne said that he has issued an order to stop the transfer of vehicles of all companies carrying the name of Ceylinco including Ceylinco Insurance following the Supreme Court order under the clarification given by the Attorney General on June 19. He said that there are hundreds of companies operating under the name of Ceylinco and it is practically impossible to ascertain as to whether such companies are connected to GK or not and these companies should prove that they have no links with Golden Key.
He added that as a responsible public officer, he could not allow the Ceylinco group to mislead the authorities.
The Ceylinco companies are continuing their vehicle sales as seen in many advertisements in the newspapers but the new ruling by the Commissioner could create problems in the transfer of these vehicles – either way: sales by Ceylinco or anyone selling vehicles to the company.
The vehicle that the Commissioner refused to transfer was sold by Ceylinco Homes International Ltd to a resident in Kolonnawa, who had purchased the car on February 16. “With reference to your letter dated 22-06-2009, I wish to inform you that the Attorney General has informed me on 19-06-2009, that an interim order has been issued by the Supreme Court restraining the vehicle transfers of Ceylinco group of companies,” the Commissioner’s letter to the resident said.
Mr. Wijeyaratne said that he has stopped several other vehicle transfers of Ceylinco companies as well.
Registrar of Lands, Colombo Sumithapala Hettiarachchi said that land transactions of GK Credit Card Company and other related entities including a few Ceylinco group of companies have been barred under Supreme Court and Magistrate court orders but not for all Ceylinco companies.
A senior SEC official said their interpretation is also that the ruling applies only to Golden Key and associated companies. “We have only Ceylinco Shriram Asset Management under us (supervisory jurisdiction) and the company has said it is winding up in September as its license has expired,” he said.
When contacted by the Sunday Times FT seeking the actual position on this matter which is of public interest, Senior State Counsel Janak de Silva who handles the Golden Key FR case in the Supreme Court declined to make any comments saying that he is bound by the public officers’ secrecy code.
However other sources at the AG’s department revealed that the department has clarified the position to Commissioner General of Motor Traffic as he has written to them as a responsible public officer and he has been informed about the Supreme Court’s interim order and that it relates to ‘Ceylinco Group companies’.
They said the relevant Ceylinco companies should submit motions before the Supreme Court to clarify this matter as there is a grey area in the ruling. The sources said these companies may not be able to carry out any transaction if they are connected to Golden Key directly or indirectly. Many Ceylinco companies are in the process of changing their names with the intention of tackling this problem, the sources said.
However former Ceylinco companies who have changed the name have said it has been done to begin a new era under new management after the negative sentiment towards the Ceylinco name following the Golden Key collapse.
Meanwhile at least 15 top directors of Ceylinco companies including Ajith Gunawardane, R. Renganathan, Daniel Jegasothy, Ms. Padmini Karunanayake and Bandula Ranaweera (the last three-mentioned directors are in remand) have filed motions in the Supreme Court in the past week against the restraining order preventing them from selling, advertising for sale or otherwise disposing of, or taking any further steps or actions to alienate the properties and assets belonging to them, informed sources said.
In their petitions, they have said that their assets had nothing to do with Golden Key or its related companies and were acquired through their own sources.
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