The Supreme Court on Friday granted bail - under tight conditions - to Ceylinco Consolidated Chairman Lalith Kotelawala in the Golden Key (GK) misappropriation and fraud case, clearing the way for him to be permitted bail in other cases, and leading to his ultimate release from the Welikada prison.
Kotelawala, facing an array of charges along with other directors in the group arising out of the GK case where Rs 26 billion is due to investors, has been in jail since February - after his credit card company collapsed with desperate depositors clamouring for their money.
Another senior group director Padmini Karunanayake was also permitted bail in the GK case in the Supreme Court but, like Kotelawala, is in remand in other cases but she too is likely to get bail in these cases. "Kotelawala is in remand in connection with the Mount Lavinia Magistrate's court case on the GK scam and in the Colombo Magistrate's court case on Ceylinco Shriram. The highest court in the land has given him bail in the main case and I don't think other courts will now object to bail," one of his lawyers said.
Friday's developments came after Kotelawala - who must be the Welikada prison's most distinguished prisoner -- agreed to the repayment plan to depositors or investors, worked out by a court-appointed committee. He has also given an undertaking to the court that he will transfer a sum of Rs.120 million to the dedicated fund set up at the Bank of Ceylon to immediately start the proposed re-payment scheme The 3-member Supreme Court bench was headed by Justice Shirani Thilakawardena. Stiff bail conditions including Rs.5 million cash bail , Rs.100 million certified bail and four sureties who are tax payers were placed on Kotelawala.
Meanwhile in an effort to repay depositors, a Special Purpose Vehicle (SPV)is to be set up as the holding company of the Ceylinco Consolidated transferring shares and assets of GK, its subsidiaries and other companies in the Ceylinco Group excluding Seylan Bank, Ceylinco Insurance and all regulated Ceylinco finance companies. Right now the majority of these shares are held by public quoted companies. Therefore by selling these shares with the management right/controlling interest as a big parcel the proposed SPV can command a premium prices, according to Attorney General Mohan Peiris. He said that a sum of Rs.2.9 billion is to be raised by selling these assets.
The Supreme Court also directed to start the repayment in accordance with the repayment plan approved by the court earlier. Accordingly depositors who have deposited a sum of Rs. 1 million and less will be paid 75% of their capital subject to a maximum of Rs. 100,000 forthwith, and those who deposited a sum of Rs.2. million and less will be paid in the similar manner with in three months. The balance money will be paid after selling assets of the company. |
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