F&G Trust dissolved, heeding requests of trustees
View(s):By Bandula Sirimanna
Trustees of the two trusts appointed to find a redress for over 4,000 depositors of failed Ceylinco companies, F&G Real Estate Company Ltd, (F&GRE) and F&G Property Developers Pvt Co. Ltd (F&GPD) have been released from their duties by the Supreme Court after two years and three months of their service.
A 3-judge bench headed by Justice Shirani Tilakawardane issued this directive on January 24 considering the request made by F and G trustees.
The trust was set up in October 2010. Depositors were agitating against the trustees for breach of trust and failure to find redress to them during the period of over two years.
Brigadier Ranjan de Silva, President Independent Association of Depositors of F & G – PDL & RECL told the Business Times that the trustees have delayed to achieve objectives of the trust by failing to implement a proper procedure during the past 27 months.
He alleged that the trustees have made payments amounting to a maximum of Rs. 125,000 per month to each of the trustees without any effective work towards repayment of the monies of depositors.
A sum of over Rs 1.8 million has been paid for this purpose, he said. Only 317 out of over 4,000 depositors with deposits under Rs. 500,000 have been repaid, during the period of the trustees, he revealed.
S.E. Mayadunne, a former Auditor General and one of the trustees, resigned in July 2012 following the allegations that the trust has failed to find a redress for over 4,000 hapless depositors.
The court ordered the executive committee of the Independent Association of Depositors of F & G – PDL & RECL to take over all documentation from the trustees and settlers.
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