#BondScam : 11 charges dropped, case postponed to January 2022

by Zulfick Farzan 06-12-2021 | 6:58 PM

COLOMBO (News 1st); The Colombo Permanent High Court Trial-at-Bar on Monday (6) accepted an argument raised by counsel noting that a case cannot be filed against Perpetual Treasuries Limited, under the provisions of the Public Property Act with regard to the Second Bond Scam.

Accordingly, the court ruled that 11 of the 22 charges in the case cannot be carried forward.

The Attorney General has filed the case with the Colombo Permanent High Court Trial-at-Bar under the provisions of the Public Property Act, Penal Code, Registered Stocks, and Securities Ordinance, and several other legislations alleging that fraud of Rs. 15 Billion was committed at the Central Bank Treasury Bond Auction of 31st March 2016.

The first accused in the case was Perpetual Treasuries Limited and the other nine defendants included Ex-Finance Minister, Ravi Karunanayake, Fugitive Ex-Central Bank Governor Arjuna Mahendra, Beneficial Owner of Perpetual Treasuries Limited Arjun Aloysius, PTLs Kasun Palisena.

Anil De Silva PC, appearing for Chitta Ranjan Hulugalle, the 7th defendant in the case and a Director of Perpetual Treasuries Limited pointed out that action cannot be filed against a company, which is a corporate entity, under the Public Property Act.

The President's Counsel, citing examples from India, argued his position in court.

Colombo High Court Trial-at-Bar held that public property charges against the accused cannot be maintained.

The counsel also argued that as the complaint is based on the first charge, it is not possible to maintain the charge against the other defendants.

Accordingly, the Colombo Permanent High Court Trial-at-Bar comprising of justices Amal Ranaraja, Namal Balalle, and Adithya Patabandige decided to drop 11 of the 22 charges against the defendants.

Senior Additional Solicitor General Priyantha Nawana appearing for the Attorney General said that sufficient time is required to inform the court to consult the Attorney General and amend the charges or for the relevant actions that need to be taken.

The case was postponed to the 26th of January 2022, and the evidence examination was also postponed indefinitely.

Two other cases relating to the Bond Scam are also being heard at the Colombo Permanent High Court Trial-at-Bar.

These are the Bond Scam of 27th February 2015 on Rs. 688 Million and the Bond Scam of 29th March 2016 on Rs. 36 Billion.