No word from Krrish on final payment, says Minister
View(s):India’s Krrish Group, despite government’s repeated extensions and reprieves, is still silent on the completion of its due payments to lease the 4.3 acre Transwork Square property in Colombo Fort, 21 months after signing an MOU with the Urban Development Authority (UDA).
Investment Promotion Minister Lakshman Yapa Abeywardene told reporters in Colombo on Thursday that the Krrish group or its local representatives have not made any representations on this matter to him or the BOI and he is awaiting a response from them.Five extensions have been given so far for the final payment of Rs.639.5 million to be made to close the land lease deal, he added.
The company has so far paid Rs. 4.3 billion of the Rs. 5 billion upfront lease rental.
He said the relevant gazette notification granting tax concessions to Krrish under the Strategic Development Projects Act will be presented to parliament only once full payment of the lease is made.
The government is not losing on the deal. Interest payments are mounting and adding to Government coffers from the Rs 4.3 billion payment with a 12 per cent penal interest for delaying payments adding to the interest earnings.
Answering a question raised by a journalist, he said that Krrish will have to find another investor if they want to get their money back, otherwise they should go ahead with the project.