ACTION TV: Blue Mountain property scam leaves many stranded without deeds

Colombo (News 1st): News 1st reported that the Blue Mountain Property Company is allegedly defrauding its customers. After this initial report, News 1st received over 50 phone calls from individuals who have been affected due to the alleged fraudulent activities. They all claimed that they have paid the full amounts due for the lands purchased from Blue Mountain and that they had not received the land deeds. Some had purchased plots of land from a sale in Batakaththara, Piliyandala. Though many who purchased land from this real estate company had paid the full amount the complete estate is under a mortgage. The Blue Mountain Company had mortgaged this land at the Borella branch of a private bank. A customer of the Blue Mountain, Randil Weeriyagalla from Badulla noted that he spent over Rs. 3 million and purchased two plots of lands. He notes that the company said the deed will be provided within three months of purchase and even charged legal fees. However, the customer notes they were not provided with the deed and when questioned the company said it will be given in 12 months. Another customer, an expatriate worker in Saudi Arabia Chandana Prasad noted that he had purchased a plot of land in Pannala when he came to Sri Lanka on holiday in the year 2017. He adds that he has paid Rs. 2,615,000, however, he is still to receive a deed for the land. The customer noted that the Blue Mountain Company had mortgaged this land at a private bank, but the company had not paid the money to the bank in spite of being paid by the customer. He noted that he has a  letter from Blue Mountain stating that the deeds will be given in 90 working days. He noted that it was given in March and now that time too has also lapsed and they have not yet received the deed. The Blue Mountain Company has also mortgaged this land in the Yakkala area, and the private bank that has granted the mortgage has now advertised to auction the land since Blue Mountain Company had not paid the mortgage. People who purchased plots of land from this real estate company and have paid the full amount several months ago. Several affected individuals decided to take legal action against the company and two of its directors are currently under remand custody. The Chairman of the Blue Mountain is evading the police after he was notified to provide a statement. However, he spoke to News 1st today (July 9) and said that out of over 1500 people who had purchased land from his company, about 300 people have paid the complete amount for their lands. He claims that he is not able to provide the deeds. He added that a settlement plan to provide the deeds of the lands will be submitted to the Colombo Commercial high court in the near future.