Ceylinco Shriram and Celestial Residencies
View(s):I am a victim of the collapse of Ceylinco Shriram Company. I deposited over Rs. 16 million in this company and I have got back only Rs. 1.5 million, less than 10 per cent of the investment.
My wife and I were living in a rented house and we were trying to sell a property that my wife owned. Due to various people trying to grab this land by various means it took about 20 years to clear all matters and sell it in 2008. We got a cheque for this sale which we deposited in an account we opened at the cheque-issuing bank, we bought a house and when we withdrew money for this transaction the bank official who handled the matter wanted to know what we are going to do with the balance. e told him that we would deposit it somewhere paying a good interest so that we can use that money for various purposes, mainly for the future of our unmarried, unemployed children and for our health needs. We are almost 70 years now.
The bank official said that many financial institutions are doing badly and might collapse at any moment but their own Ceylinco Shriram Company is the best place for our money to earn the best possible interest. He spoke to the Shriram office and told us that they would give an interest of 24 per cent.
As this came from a bank official we believed him. He took us to a higher official who confirmed what he said. They wrote a cheque in favour of Ceylinco Shriram and asked us to go to that office and put the money there.
They were so convincing that we did as we were told.
Later, another part of the payment we got for the land was also deposited at Shriram on the same strong recommendation of the bank. However, when the time came to collect the capital and the returns we were told that there was problem in re-payment but as they had enough property all due payments would be made by selling these assets. One main property mentioned was the Celestial Residencies in Colombo 3. Estimated at around Rs. 10 billion, this was our main hope.
In a surprising and sudden operation the previous Rajapaksa government took over this property and it was reported that they had sold it to some company. Later we also came to know that a Chief of the Presidential staff was a director of some business run in this building. An opposition parliamentarian at that time told Parliament that the buyers of the property were four individuals who established a company with a capital of just forty rupees!
Now we understand that we may not get our dues due to this dirty transaction. Out of the Rs. 16.5 million we placed with Ceylinco Shriram, we have so far, up to 3rd September 2015, got back only Rs. 1.5 million. The story spread by some people that all depositors have got 60 per cent of their investments is nothing but a plain lie.
Hundred per cent of the deposits, together with due interest can be paid back if the Celestial Residencies are sold by international open auction. We think the government can now get the expert opinion on the fairness and accuracy of the price at which Celestial Residencies was sold and the legality and fairness of the modus operandi of the whole process.
We appeal to the Prime Minister and the government to consider these facts, investigate deep and fast into the whole process and take over the building, sell it at the right price and pay the Ceylinco Shriram depositors what is rightly due to them.
Helpless Shriram Depositor
Kandy.