Krrish, since May 2013, is yet to make a final payment of Rs.589. 7 million to close the four acre land lease deal. The total payment made by them was Rs. 4.4 billion while the total payment to the Urban Development Authority (UDA) to commence the project is Rs. 5 billion.
UDA Chairman Ranjith Fernando told the Business Times that Krrish representatives will hold talks with him next week on issues relating to the stalled project.
He noted that each and every detail of such mega projects need to re-examined before arriving at a decision.
The former Government before its collapse was working on five ‘strategic development’ deals – Krrish Transworks Colombo (Pvt) Ltd, Lanka Sugar Refinery Company Pvt Ltd, CHEC Port City Colombo Pvt Ltd, Avic International Holdings Lanka (Pvt) Ltd and Prosperity Place Lanka (Pvt) Ltd.
The deadline given to Krrish to make the balance payment with penal 12 per cent interest has been extended till end March, he added.
Krrish officials headed by CEO R. Gupta, will also meet Chairman of the Board of Investment (BoI) Upul Jayasuriya, BoI sources revealed.
The allegation of secret payoffs to keep the window open for payment and for various approvals ended with some unfortunate incidents. Names of several powerful members of the former regime figured in the allegation of secret payoffs by the Krrish Group.The former Rajapaksa government offered a 25-year tax holiday to the company but the gazette notification granting these concessions was not presented in parliament by former Investment Promotion Minister Lakshman Yapa Abeywardena due to the company’s failure to pay the balance money for the land under the lease agreement.
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