Financial Times

Directors of F&G Property Developers (Pvt) Ltd released on bail

Five Directors of F&G Property Developers (Pvt) Ltd and F& G Real Estate Co Ltd, in remand for several weeks, were allowed bail on Tuesday and Wednesday in two separate hearings of the F&G fraud case by Colombo Chief Magistrate Nishantha Hapuarachchi and Colombo Fort Magistrate Gihan Pilapitiya subject to strict conditions.

Ceylinco Chairman Lalith Kotelawala was not given bail as he failed to submit an affidavit expressing his willingness to contribute 1/6th of his personnel assets to a special fund that will be set up for repayment of a sum of around Rs.8.3 billion as the return of the capital sum deposited by some 5,600 depositors in these two companies.

Deputy Chairman Mervyn Jayasinghe, and directors K.A.S Jayatissa and Mohan Perera were released on bail as they had complied with the court directive in adopting a resolution to make payments to depositors. Deputy Solicitor General (DSG) Yasantha Kodagoda told the court he was not objecting to the granting of bail as the directors approved a repayment plan for depositors of the failed company.. Mr Kodagoda submitted that all suspects should transfer 1/3rd of their personnel assets acquired since the date of joining the Ceylinco Group to a special trust and Kotelawala should transfer 1/6th of his assets as he has to fulfill obligations towards Golden Key depositors as well.

These three directors with Ranga Nanayakkara and Chalaka Perera were released on Rs.175,000 cash bail, two sureties (both - public sector executives) and a personnel bond of 1/3rd of their assets by Magistrate Pilapitiya in the F& G Real Estate Co Ltd fraud case on Wednesday. Directors of the two companies gave an assurance by submitting affidavits to take prompt action to re-acquire former assets of these companies vested in some depositors since December 1, 2008 under duress, improper influence or any unlawful means.

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