29 September, 2020

Blog

Did Krrish Dupe Parliament? Cancel All Tax Breaks And Investigate Entire Transaction Immediately

By Harsha de Silva

Dr. Harsha de Silva

It is exactly one year to date since Krrish Group signed an agreement with the Board of Investment to build a sprawling mixed development consisting of three dizzy 95 story towers and another 80 story tower at Transworks Square in the Fort. (Click here to read)  Powerful ministers who backed the project said Krrish was partnering with Ritz Carlton to bring the seven-star hotel to Colombo besides the top brands to be sold at the ultra-luxurious retail mall.

When Parliament agreed to grant massive 25 year tax exemptions to Krrish Group last year it was based on the condition that the so-called investor was to make full payment for the 99-year lease for the 4.3 acre property as per the agreement and also have commercial operations begin on a given date.  (Click here to read) Even though the opposition argued that there was a complete lack of transparency in the ‘deal’ the Government insisted that procedure was followed for such ‘unsolicited proposals’ and assured that the investor was committed to the at least USD 500 million investment, which was later increased to USD 1,400 million.

But one year on, the investor has not even completed the payment for the lease, let alone start construction.  The massive hoardings advertising the shiny towers have disappeared and no statements are forthcoming from anyone on the current status.  All the glitzy designs on its website are gone and only a sketch of the Transworks Square building, which invaluable building Krrish paid nothing at all to get; remain. (Click here to read)

It now seems that this whole project was a hoax and that Parliament was misled both by the Minister and by the investor.  We demand that the massive tax breaks granted to this investor be cancelled immediately and an impartial investigation be launched in to what exactly happened.  The investigation must find out who were behind this transaction and blacklist all such persons so that hereafter Parliament will not be duped by such fly-by-night operators with connections to high places.

From the very beginning of this purported project by the unknown Krrish Group we questioned the Government for information on who the promoters were; how the prime property came to be given to this company without any transparent process; what the role of the Central Bank and the UDA were and many other relevant questions.  We got no credible answers except that that Krrish was a globally recognized real estate developer and was certainly going tochange the skyline of Colombo.  Ministers reiterated that the almost USD 50 million for the land would be paid in full as soon as UDA was able to transfer the lease title to Krrish.  Deadlines were given and revised several  times starting from end of last year (Click here to read) to the last one of 15 July 2013 (Click here to read).  For effect they slammed the opposition, including myself, as working against national interests.

While all this was going in public it is now well known that even more was happening in private.  Over the last few months questions have been raised on whether money changed hands under the table.  Names of several key figures including that of the current Chairman of the Securities and Exchange Commission Dr Nalaka Godahewa have been linked in the main stream media to secret payments that have been allegedly paid to secure the legal rights to develop the land.  Various statements have been made by the authorities that an investigation would take place, but in reality nothing at all has happened, except that the said person has purportedly been removed from several board positions on companies linked to the UDA leading to even more questions than answers. (Click here to read)

It is with regret that the UNP notes that Krrish seem not to be the only disappointment.  Many so called massive development projects seem to be either stuck or going very slowly prompting us to ask the question whether these so called investors are real or pyramid scheme type scam artists who seem to have taken even the national legislature for a ride.

*Harsha de Silva is UNP spokesman on Economic Affairs

Print Friendly, PDF & Email

Latest comments

  • 0
    0

    The Secretary of Defense under whom the UDA comes and the Governor of the Central Bank should be summoned to the Parliament in front of a Parliamentary committee and questioned. If the Government is not willing to appoint a Parliamentary committee for this purpose then the opposition should be able to find enough votes to demand one. If this cannot be done by the opposition then the opposition should accept defeat and keep quite. This would bring about the question “why do we have an opposition in the Parliament”. The opposition should not attend Parliament.

    • 0
      0

      Shangri La is also hanging suspended in mid air in Colombo and Hambantota…
      Kerry Packer’s Casino is also hanging somewhere ..
      So too will the new John Keels project be suspended in mid air! No one is rushing to buy apartments in Colombo now that the US is pulling back on quantitative easing..

      Hambantota Peacock hotel was empty is May this year.. there are NO TOURISTS and the economic SPIN and bubble is bursting and the Rajapassa shit hitting the fan.. only about 250,000 real tourists, (as opposed to diaspora and Indian traders), visited Lanka this year..

      The rupee is crashing and Nivard Cabraal’s spin about ‘virtuous cycles’ in just that CYCLES of SPIN!

  • 0
    0

    Isn’t this the Buddhist monk molester?

    • 0
      0

      FF:- What has that got to do with this very Lucid and Articulate Expose’? Whom are you trying to protect?

      • 0
        0

        Trying to divert the subject – don’t play into the hands of these scumbags !

        • 0
          0

          No.

          It is relevant as much as the drunkedness of the BBS leader.

          Molesters cannot be good leaders!

    • 0
      0

      Slut Fathima Fuckshima,
      Do you like to be molested by a Buddhist monk?

  • 0
    0

    Mangala Samaraweera, both in and out of Parliament at the time KRIISH was making waves claiming they are a premium business congloramate, kept the country informed there is more to the whole sordid deal than that meets the eye. Samaraweera pointed out this outfit is not known for large building projects – even in India. Harsha followed and pointed out the more than necessary generous Tax concessions are being given. Leading sources in the commercial world felt this whole thing can be a huge scam because Kriish was trying to gather investments from potential local buyers of the so-called super-luxury Condos and Office space. There was suspicion Kriish was using the influence of VVIPs in the system to twist the arm of local State banks to take the burden of much of the financing. It is no secret a top Bollywood actor came in a private jet to buy influence here among VVIPs for this deal at this stage. It is rumoured a leading and respected figure in the higher banking circles in the country resigned as pressure was used on him in the Kriish deal.

    There were requests to the Government to get the Indian High Commission to comment on the suitability of this group – certainly not one of the top Indian business groups in the league of the more reliable Tatas, Birlas, Reliance and ITC. It is understood the IHC did not want to get involved, which is very strange for a commercial deal of this import and magnitude.

    Suspect business groups in the region (India, Singapore, Hongkong, Korea, Japan) will not cease efforts to inveigle shady VIP politicians in the country to make a fast buck in shoddy or flybynight deals. Sri Lanka seems to have gained a reputation as one in which VIP politicians can be easily bought off.

    It is fortunate Mangala Samaraweera, Harsha de Silva, Ranil Wickremasinghe and others are doing what Parliament should do – carefully watch our large cadre of venal political leaders in the regime falling pretty to temptation at the cost of the country.

    F.N. Stein

  • 0
    0

    Voters will be deaf and blind to you and UNP until the Tamil Nazi and their TNA are out of the picture.

    • 0
      0

      And what do you think you are?

    • 0
      0

      Let’s see how long you going to hoodwink those deaf voters and dumb voter with the LTTE phobia that you artificially create.

      Srimavo and then that ‘sagatha’ poverty-regime were under the impression even before the election day they they would win. Mind you, MaRa is no Sirimavo.

      Its high time for you to hang your gloves up Furzana Lester Softy.

    • 0
      0

      By that time everything the voters have will have been stolen from them and their children for many generations to come. Congratulations you True Sinhala Buddist Patriot!

  • 0
    0

    what can I say . Indian companies .

  • 0
    0

    Maybe the commissions were not paid.

  • 0
    0

    This is a huge scam to playout the country. They hoped to raise millions from the public but failed. Now Krish could come clean and name the scoundrels who killed the project with their demands.

    What has happened to Shangrila and the Colombo Commercials projects. All stuck in the mud? Govt and UDA is taking money from investors and dumping on other white elephants. Even Krish will not be able to get their money back.

    • 0
      0

      The local state banks have granted the loans – Krish is not the loser ! The commission may have been transferred from one local account to another :)

      Shangrila – already over shot the budget. May be due to paying never ending bribes.

      We need to accept the fact that Sri Lanka will never be able to attract high-end travellers. We do not have the know-how or the resource.

  • 0
    0

    How can UNP jokers oppose private capital corporations exploiting people? The record of UNP rule makes one sick of voting for it.

    Chandrika and MahindaR are no different from UNP in allowing capitalist exploitation.

    Support Bodu Bala Sena for a radical change.

    • 0
      0

      Hello Charlie, The problem is that there is a big fraud going on here.
      If you want to campaign for BBS it well and good and thats your wish and your rights but just dont show fakely that you are against Tsunami Hora. BBS is his and his bro’s bastard child.

  • 0
    0

    What an Absolute unbridled travesty. Is there in comparison to this level of idiocy anywhere else in the world. The buffoons think they can hide their crimes and hoodwink legitimate investors. But what is really happening is that no real investor will touch S.L. under a bunch of thugs with a barge pole. So in comes all the illegal schemers and tricksters. A crook only attracts more crooks.

    • 0
      0

      Haramanis maame,

      This is what happens when rogues fall out. The Medamaluna modayas are not aware today mega-crooks, functioning as political leaders, are under the radar of global organisations monitoring the larger cases of
      bribery. Under UN inspiration there is cooperation between govts in exchanging data to flush out the loot of these rogues. Marcos’s loot was uncovered and given back to the Phillipine government. Our boys will find their name in this list soon – given global publicity and possibly causing problems to their Green Cards.

      Hooker

  • 0
    0

    At the moment we can only guess that Sri Lanka has no credibility along with Krrish. My guess is also that laundered moneys are difficult to access nowadays due to the financial collapse in the West, and the monitoring of the movement of these monies by special interest groups. These groups know how much money is stashed, by whom and where. Some of the defenders of this government will be shocked out of their sycophancy when names are released. What is worrying these people is that they are unable to get the money back.

  • 0
    0

    /*Krrish*/

    My take is few out of 4 top decision makers did not get their cut from Krrish for this investment. So this project is being dragged.

    Same for Casino project.

    • 0
      0

      Sumith,

      pl update yourself, in SL nothing will take off the ground without the green light from the elite , US $ 4 mil have already been paid by the company as the initial snthosam, if you have any doubts pl contact either Mandana or Nalaka G for verification.

  • 0
    0

    If an investigative reporter can trace where these large commissions
    are sashed and blow it out in the open, all frauds will come to an
    end in SL – there are loopholes which the CB is aiding and abetting?

    • 0
      0

      Punchinilame, is there any surprise when they have their croney as the Head of Central Bank, Nivard Cabral who was handling their Pyramid scheme earlier? Krish is chicken feed for them. Damn good let all these be faliures and the Public should not invest in any of these projects even if they have the funds.

  • 0
    0

    This is how this racket will foldout!

    Land title is transferred after appropriate bribes are deposited in addition to what has already been disbursed.

    Krrish then turns around and markets title to leases on said property to developers and many times the market rate -prior to UDA transferring title to them.

    Hotel Developers and the like pay Krrish the inflated valuation to get land development leases and built their structures.

    Why the delay???
    Because no one with a brain will finance the construction of such huge structures on a whim. The Chinese are not that stupid!! And there is no one else left to sucker. Ritz Carlton or Hilton don’t build hotels. They manage them. Someone else must put up the money to build them.

    Krrish has never had the resources to do anything! They have the connections to do backroom deals and have had success in flipping the nefariously acquired leases. In India the new-rich Middle class is buying up luxury apartments like there is no tomorrow and when the monsoons come, the underground parking is under water, just like their apartment loans!

  • 0
    0

    All these happen because the GOSL attempts to please India because of the engagement of CUT THROAT politics by the UNP

  • 0
    0

    Dr, Harsha de Silva: You say from the very beginning, you wanted to know who this “KRRISH DEVELOPER” is? Apparently you did not get a proper answer and now you feel the Legislature has been “duped”.

    In this situation what do you think the citizens of this country expect from a responsible “Opposition”? In my opinion, it is nothing short of an investigative report relating to this “Krrish Developer”. If you cared to do that along side these revelations of corruptions and hidden transactions, don’t you think you are doing the DUTY expected from the Opposition of the Legislature. Also please remember there is a Government Agency called the “Bribery Commission” where a complaint can be lodged against such people involved in corruption and bribery. If you have credible evidence, why don’t you do that and show us that you, the Opposition, speak and act against such activities.

    Do not tell us that nothing would come out of such complaint. Please do it and let it be on record and we will appreciate that move much more than mere presentation through the media. You very well know how this Government treats the media. But it is different if a genuine complaint is made and made public.

    Thank you.

  • 0
    0

    So many crooked deals are taking place everyday. A krrish here, a deyata kirula there. What’s the big deal? After all this government is democratically elected and they have every carte blanche to plunder the by no means innocent civilians.

  • 0
    0

    Sri Lanka is not currently a fertile ground for grand high class luxury investments; where property rights are abused at will. However, it is ideally suited for small time investors in the service/cottage industry. Unfortunately, it is yet to mature as a secure and stable place to attract investments. The infrastructure (White Elephants) that is planned and built might be of no or little use due to failed policies and rapid technological advances.

Leave A Comment

Comments should not exceed 200 words. Embedding external links and writing in capital letters are discouraged. Commenting is automatically disabled after 7 days and approval may take up to 24 hours. Please read our Comments Policy for further details. Your email address will not be published.