Kandy Times

KMC-private company in parking fee battle

By L.B. Senaratne

A private company has sued the Kandy Municipal Council (KMC) for nearly Rs. 25 million as damages for breach of contract.

Kandy Property Finance and Investments Ltd., (KPFIL) through their Attorneys S.R. Narayana Swamy of 22/2, Schofield Place, Colombo 3, has sent a letter of demand claiming Rs. 25,739,556.38 from the KMC for non-compliance of certain acts by the Council according to an agreement reached on December 8, 2005.

The letter was apparently sent under the provisions of the Council bye-laws and the Local Authorities Act of 307/1, giving it a month’s notice.

Attorney for KPFIL sates that his client had continually been informing the KMC to implement the bye-laws pertaining to the parking of vehicles. Since it had failed to implement the provisions, his client had lost the sum of money claimed.

The letter further states that the client who had executed an agreement on 8.12.2005 had been given the right to collect parking fees from the vehicles within the Municipal Car Park and in other specified roads. It further points out that under section 3 and 4 of the agreement his client had to spend a considerable sum of money to execute the services.

The letter further states that due to the negligence of the Kandy Municipal Council and other illegal actions, KPFIL had accrued losses to the value of Rs. 257,39556.38.

KMC Member Anura Gonawela brought this matter to the Council’s notice at its monthly meeting on Friday and said that if precautionary action was not taken it would cause huge financial losses to the KMC.

He also warned that from the word 'go' he had been against the leasing of the Municipal Car Park and that now his prophecy had come true. He urged the Mayor for quicker action.

The meeting was presided over by Mayor L.B. Aluvihare.

It is reliably understood that before the private company sent the letter of demand, the Municipal Commissioner had appointed a Committee, including the Chief Municipal Accountant and on its report, the KMC had sent a letter of demand to the private company claiming Rs. 20,3255.20 as dues to the Council.

Back to Kandy Times