All systems go for Krrish square project construction
View(s):The US$ 650 million-Krrish square project construction is now underway following the final payment (about Rs. 690 million or US$5.3 million) plus fines for the delayed payments being made, top officials of the Board of Investment (BOI) and Urban Development Authority (UDA) confirmed to Business Times (BT).
Krrish Transworks Colombo (Pvt) Ltd, local company of the Krrish Group signed a supplementary agreement with the BOI on November 29, 2016 to complete the project in 48 months, BOI chairman Upul Jayasuriya said on Wednesday in an interview with the BT.
The company will not get tax concessions under the Strategic Development Project Act but provided a tax holiday under section 17 of the BOI Act, he added.
In a separate development, the Cabinet Committee on Economic Development (CCEM) considering submissions made by the Ministry of Development Strategies and International Trade, has referred the Krrish project matter to the Attorney General (AG) for its opinion on the status of the project considering an ongoing court case.
MP Namal Rajapaksa was arrested and remanded in July 2016 for misappropriating Rs.70 million ($500,000) given by Krrish as a sponsorship for a rugby tournament organised by the Carlton Sports Network. Later he was released.
The case is pending at the Colombo Fort Magistrate Courts. The FCID informed the Court on October 31 that the investigation of the inquiry is over and no more suspects are to be arrested with regard to this matter. Subsequently, Fort Magistrate Lanka Jayaratne, fixed March 20 2017 for the Attorney General’s opinion on the case.
The CCEM has directed the ministry not to grant the Strategic Development Project status for the Krrish square project but to give any tax concessions already agreed by the BOI and proceed with the project with AG’s concurrence.
“Krrish Group has nothing to do with the case as it was only the sponsor of a rugby tournament. It was given the greenlight to go ahead with the project following its settlement of the final payment in the land lease deal with the (UDA,” Mr. Jayasuriya said.
Earlier 3.7 acres of land had been cleared by the UDA to proceed with the Krrish Square project construction work under its first phase, UDA Chairman Jagath Nandana Munasinghe revealed.
Construction work on the balance 0.6 acres had been temporarily halted due to a dispute over the final payment (about Rs. 690 million), a UDA official revealed.
MTD Walkers plc is now carrying out piling at the site and it is nearing completion, official said. Krrish had earlier planned to build four towers – the tallest tower with 85 floors, the second 80 and the other two -55 floors each, in five million square feet of residential, commercial space and a hotel.
The project has been downsized from its earlier status to two towers under the present circumstances, official sources revealed.
India-based Krrish Group sealed the controversial deal, that drew allegations of huge pay-offs to politicians and officials, signing a lease agreement with the UDA in August 2012 with the money to be paid in full By January 2013. -(Bandula)