CIFL depositors struggle to get back their deposits
When the Central Investment and Finance Ltd (CIFL) vs the Directors of CIFL case came up for hearing on Thursday before Ms Lanka Jayaratne, Chief Magistrate, Chief Colombo Magistrate’s Court, the lawyers of the aggrieved party CIFL Depositors Association (CIFLDA) pointed out that the Attorney-General’s Department has failed to charge sheet or indict the alleged swindlers of around Rs. 3.4 billion since 2013.
Mr. Muditha Perera appearing for the aggrieved party indicated that the investigators have clearly omitted to act under Section 20 Sub-Section 1 of Finance Business Act (FBA) No. 42 of 2011 where if any company fails to repay deposits or fails to pay interest thereon on demand or for a date of maturity agreed upon at the time of deposit., the director, manager or secretary of such a company shall be guilty of an offense under this act.
The magisterial inquiry on the CIFL scam has now concluded and the matter has been referred to the Attorney General’s Department, but due to the long delay in acting under the FBA law the CIFLDA is concerned as the delay still causes immeasurable misery to their members and some of these mostly senior citizens are dying.
The CIFLDA points out to the Attorney General’s Department and the Governor of the Central Bank a recent magisterial statement for coupling of the aforesaid case under the FBA Act, Section 20(1) and the legitimate expectations given by the Central Bank on 18/10/2019 and as such around 4,200 of their members are suffering.
They point out that since 2013 no action has been taken in order to report the matter by the authorities concerned as per FBA Act. They indicate that under Section 73 of the same Act there is a new definition of the term ‘Deposits’ giving statutory protection to the depositor for the total amount and in case of failure alternative solutions adopted by Central Bank as per FBA.
The magistrate has now referred the matter to the Attorney-General and the AG has enormous discretion to take action in this case either moving for further investigation or indict the accused before the High Court. The magistrate indicated the reference number of the case to CIFLDA to consolidate with AG’s Department to expedite action.
Attorney at Law Muditha Perera instructed by Nihal Weerasinghe and Ms Pumali Jayakody appeared for the aggrieved party – CIFLDA.