SC TERMINATESFR petitions by GK depositors

In the wake of the Supreme Court approving the new action plan to repay Golden Key Credit Card Company (GKCCC) depositors 41% of the funds deposited in the company. the Supreme Court yesterday terminated all proceedings with regard to the three fundamental rights petitions filed by GKCCC depositors.

The fundamental rights petitions had been taken up for hearing over a period of six years before five chief justices and 17 judges of the Supreme Court.

The parties mentioned in the petitions yesterday agreed to the repayment plan which was submitted to Court by the Central Bank through the Attorney General’s Department.

Meanwhile, a five-judge Supreme Court Bench comprising Chief Justice K. Sripavan and Justices Eva Wanasundara, Rohini Marasinghe, Sisira de Abrew and Buwaneka Aluvihare observed that interim orders relating to the seizing and sale of properties belonging to the directors and Ceylinco group companies where such properties had been sold to third parties would not be reversed.

On June 18, Deputy Solicitor General Viraj Dayaratna appearing on behalf of the Attorney General informed Court that the Cabinet had approved the repayment of 41% of the deposits to depositors of the GKCCC. Under this plan the Treasury would allocate Rs.8.5 billion to carry out the repayment plan. The amount allocated would be reimbursed from the assets of the company.

The repayment will exclude any accrued interests not withdrawn before the collapse of the GKCCC. According to the new plan of action, the Company will comprise a three-director board chaired by Priyantha Fernando and two nominees from the Treasury. When the repayment plan is completed, the CB would liquidate the GKCCC.

According to the proposal those with deposits of two million rupees or less would be paid 41% of the amount deposited within one month. Those who have deposited between two million rupees and ten million rupees would receive 41% of deposits within two months and those with deposits of more than 10 million rupees would be paid within a year.

The fundamental rights petition filed by the depositors had cited the Central Bank Monetary Board, Finance Minister, Ministry Secretary, Central Bank Governor, Golden Key Credit Card Company, Lalith Kotelawala, Khavan Perera, Sicille Kotelawala, seven others and the Attorney General as respondents.

The parties yesterday agreed to the repayment plan which was submitted to Court by the Central Bank through the Attorney General’s Department