Krrish must complete project within 3 years or exit : MinisterView(s):
The government would be forced to cancel the Krrish square project in Colombo if it is not completed within 3 years, a senior government minister said.
“Although the Delhi-based investor requires making a major effort to avoid the dire consequences of failure to make the final payment nothing is impossible if you have money”, Minister of Investment Promotion Lakshman Yapa Abeywardena told a media conference in Colombo this week. More than 18 months have passed since Krrish signed the agreement (August 2012), leaving 2 1/2 years to complete the final lease payment and construction.
The company has paid around Rs 4.4 billion of the Rs. 5 billion upfront lease rental so far, and requires paying a balance of Rs. 639.5 million to close the lease agreement.
The Minister told the Business Times that the company had agreed to pay the lease amount in full by the end of October but no payments have been made so far after the September payment of Rs. 150.8 million to the Urban Development Authority.
Payment delays have occurred since May 2013.
Official sources said the Board of Investment has given the Krrish group four extensions to pay the balance and the company is yet to respond.
The project has been marred by alleged kickbacks, widely reported in the Business Times. The Krrish Group has complained to the newspaper about articles ‘bringing it into disrepute’, while the Securities & Exchange Commission (SEC) has also complained against reports pertaining to its chairman Nalaka Godahewa and alleged links to the Krrish deal.