Kotelawala controlled company has 22% stake in Ceylinco Insurance
When the Golden Key Credit Card Co (GK) depositors’ Fundamental Rights case was taken up before the Supreme Court this week, court was informed that a Lalith Kotelawala-controlled company has a 22 per cent stake in Ceylinco Insurance, a successful insurace company.
The court made several orders pertaining to the seizure of assets belonging to Lalith Kotelawala, his wife – Sicille Kotelawala and other former directors of GK.
The bench comprised Chief Justice Mohan Peiris, Justice K. Sri Pavan and Justice (Ms.) Chandra Nanayakkara.
Following a submission made by the depositors’ counsel that CEISOT (Pvt) Ltd is owned by Mr. Kotelawala and two others, court ordered the seizure of these assets. It was submitted that this company holds 22 per cent shares of Ceylinco Insurance which would be worth billions of rupees. The shares of CEISOT are divided into 20 and Mr. Kotelawala owns10 shares and the balance 10 owned by two others.
Court also ordered a probe into whether depositors’ money amounting to about US$2.1 million had been transferred to a bank in Switzerland. Counsel for the depositors had raised this issue and the court ordered an inquiry in response.
The court ordered that all the orders made on that day and the other orders already made and not implemented to be implemented in full.
Earlier the court had ordered that three floors of the ‘Ceylinco House’ given to the newly constituted Golden Key should have been handed over by September 30. On Monday, it was ordered it be handed over immediately. Representatives of the depositors told the Business Times that these floors could be sold to the highest bidder and pay the depositors.
Depositors submitted to Court that there is a company called S&L Co. owned by Sicille and Lalith Kotelawala and that it owned lot of properties. Court ordered that the assets of that company be transferred to depositors.
Court allowed one month for the former GK directors to submit their objections.
The court went through all the submissions of the counsels of both sides for four hours. The next date for hearing was fixed for 10 March 2014.