New ray of hope for GK depositors
View(s):By Bandula Sirimanna
The Supreme Court on Thursday endorsed a fresh payment plan of action presented by the Central Bank for aggrieved Golden Key depositors, after its former directors on bail including former Ceylinco Chief Lalith Kotelawala failed to release their assets.However there was no reference to another bail condition –sending some of the directors back to remand if they failed to transfer their assets.
When bail conditions were set on the 23rd of October 2009 by the court, one provision was that “a violation of any of these conditions will be resulting (in) the immediate cancellation of bail and (them) being placed in remand”. However when the 3-judge bench headed by Chief Justice Mohan Peiris gave a ruling in the case on Thursday, there was no mention of this bail condition.
There have been at least 20 interim orders in the GK case including the one where the suspects including Mr. Kotelawala were released on bail on the promise of disposing their assets, counsel appearing for GK depositors, said.
At least 70 per cent of deposits would have been repaid if these interim orders were implemented by the (Lakshman) Watawala committee, they added.
The ‘threat of further remand’ provision applicable to directors Kotelawala and Padmini Karunanayake was part of bail conditions announced in courts in the presence of Mohan Peiris (current CJ) when he was the Attorney General. Appearing for Kotelawala was Romesh Silva, PC.
On Thursday, court ordered the Central Bank to sell the personal assets, including shares belonging to GK directors since they had violated the bail conditions in which they agreed to contribute their personal assets towards the repayment of depositors. Prof. M. Suffrullah, a lawyer appearing for the depositors, told the Business Times that under the provisions of the Sri Lanka Companies Act and the Finance Companies Act, assets of directors could be seized by the Monetary Board (Central Bank) for committing company fraud.
He added that a task force comprising a DIG, two senior officials of the Central Bank, an officer of the army intelligence unit, a senior state attorney and a senior Urban Development Authority officer would be appointed to recover dues from these directors.
Chairperson of the all GK Depositors Association Dushyanthi Hapugoda said she will fight for the rights of depositors till the authorities complete the repayment of at least 70 per cent of over 9,0000 deposits.
She added that the assets identified so far are sufficient to repay 41 per cent of deposits but a newly reviewed company will work towards realizing all assets of former directors and subsidiary companies.
According to the action plan, all current individual net balances up to Rs. 300,000 shall be retained within the security deposit holders account to make repayments to them.
Out of the individual balances of over Rs.300,000, 33.3 per cent will be retained in the security deposit holders account and the balance converted into ordinary shares of the GK company.
Until the value of the balance security deposits outstanding up to Rs 300,000 is settled; all security deposit holders will be paid equal distributions towards their respective balances.
The balance security deposits beyond Rs.300,000 will be settled on a pro-rated basis.
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