Krrish site to be offered to CHOGM business delegates
View(s):The Government is to offer the Transwork site in Colombo now leased out to India’s Krrish group to potential investors attending the Commonwealth Business Forum, official sources said.
This is because the company has failed to make the final lease payment and amidst accusations of corruption linking a top state official to the deal.
The sources said that the Krrish group has only carried out soil testing while there was no sign of the project getting off the ground.
Another senior government official said that the government has given Krrish repeated extensions to make the final payment even imposing them with a 12 per cent fine for the delay on three occasions.
However the latest proposal to showcase the site to other investors has other repercussions as Krrish has already sold some super luxury apartments at around Rs. 93 million per unit.
Some of this money has been returned to apartment owners who requested the money back after the project ran into difficulties. But there are others whose money is still with Krrish.
Apart from that, the official said, that without a formal approval of the building plan it was somewhat illegal to sell the apartments.
Meanwhile the Investment Promotion Ministry is to submit a cabinet paper to reduce the land transfer tax to below 10 per cent to facilitate foreigners seeking to lease land.
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