SC refuses leave to proceed in Entrust FR case
The Supreme Court on Tuesday refused leave to proceed in a Fundamental Rights application by C.N.S. Mendis – a depositor of Entrust Securities – against the Central Bank (CB) to perform its duties and responsibilities by properly supervising this finance company to safeguard the investments of the petitioner. Counsel for the petitioner submitted to Court that the CB has done very little and too slow. He said the petitioner has invested in Government-backed securities with a primary dealer – Entrust Securities. This primary dealer was authorised by the Central Bank and the Counsel submitted that when the deposits had matured Entrust Securities failed to return the petitioner’s money.
The petitioner blamed the CB since Entrust Securities is a regulated financial institution and that the CB has failed to discharge its responsibility as a regulator of the monetary process. The petitioner had complained that prior to the takeover of Entrust by the National Savings Bank (NSB), the CB had failed in their regulatory function of the Entrust Securities and his funds were in peril at the time the NSB took over. He submitted that not only has his money not been returned but even the letters he sent to NSB were not acknowledged or replied.
Additional Solicitor General Sanjaya Rajaratnam, appearing for the respondents – CB and the NSB indicated to Court that the CB has taken over the operations of the Entrust and the management of it was given to the NSB. He further submitted that the CB is performing its supervisory function in the right way. After hearing both parties, the Court refused leave to proceed in this FR Application. The Bench comprised Justices Priyasad Dep, Prasanna Jayawardene and Nalin Perera Gamini Marapona, PC with Jeewantha Jayatilleke and Navin Marapona appeared for the Petitioner while Sanjaya Rajaratnam, Additional Solicitor General appeared for the Central Bank, Monetary Board and NSB.