Money laundering probe on MP Namal over Krrish deal

The Police Financial Crimes Investigation Division (FCID) informed the Colombo Chief Magistrate’s Court last Thursday that an investigation is underway under the Prevention of Money Laundering Act concerning MP Namal Rajapaksa’s alleged involvement in the controversial Krrish transaction.

This notification was submitted along with a detailed B-report outlining the findings of the investigation.

What is this Krrish Transaction ?

The Krrish Project is described as a strategic investment initiative involving the development of a 4.3-acre plot at Transworks Square in Colombo Fort, intended for the construction of four towers.

The land was leased to Krrish Transworks Colombo Pvt Ltd for 99 years at a value of Rs. 4.955 billion.

The controversy surrounding the project comes from alleged irregularities in the financial transactions linked to it.

Accusations of money laundering and large-scale corruption related to the project have persisted since 2013–2014.

Among the transactions under scrutiny is a Rs. 70 million payment, for which Namal Rajapaksa was arrested and remanded before being released on bail in July 2016.

What is the story behind the 70 million rupees?

According to the FCID, Namal Rajapaksa had requested financial support for rugby development from R.P. Gupta, a director of Krrish.

Subsequently, Rs. 70 million was reportedly deposited into two bank accounts belonging to Nimal Perera between October and December 2012.

Investigations revealed that in May and June 2013—prior to the launch of the Super Sevens Rugby Tournament—Nimal Perera allegedly transferred the funds to Namal Rajapaksa in two installments.

Namal Rajapaksa stated during questioning that the money was used for tournament expenses and handed over to the board and committee of Premier Sport Ltd, the organizing company.

However, FCID informed the court that directors of Premier Sport Ltd denied receiving the funds for the tournament, suggesting the money may have been used for Namal’s personal activities without board knowledge.

This led to the observation that Namal Rajapaksa may have obtained funds from Krrish Lanka Pvt Ltd and used them for personal purposes without the knowledge of the company’s board.

Further investigations into Nimal Perera’s bank accounts revealed additional information, including foreign remittances with contradictory explanations from the account holder.

These details were included in the B-report submitted to the Colombo Chief Magistrate’s Court last Thursday.

The FCID stated that the investigation is ongoing and that the report was submitted in accordance with the Criminal Procedure Code.

The division requested that the case file be set aside until the investigation is complete.

Meanwhile, the Attorney General has filed indictments against Namal Rajapaksa in the Colombo High Court over the alleged misuse of the Rs. 70 million, with the next hearing scheduled for September 26.

The FCID submitted a new B-report to the Colombo Chief Magistrate’s Court in connection with the ongoing money laundering investigation.