Investment agreement of Ceylinco F&G Companies: Parties explain progress

By Lakmal Sooriyagoda 
The fundamental rights petition filed on behalf of the depositors attached to Ceylinco F&G Companies has been taken up before the Supreme Court through a motion, in order to bring the court’s urgent notice regarding an investment agreement.  

The purpose of calling this case before the Supreme Court was to bring the attention of the court on the matters that have arisen out of and in relation to the investment agreement dated 30/04/2021, entered into between ZRA and the fifth respondent F&G Property Developers (Private) Limited and the sixth respondent F&G Real Estate Company Limited and the delay in depositors receiving back the money that they lost, which had been deposited in these two companies. 

On behalf of the investor, it was contended that the investor had duly provided two bank drafts, each worth of Rs.250 million to the fifth and sixth respondent companies but the said fifth and sixth respondent companies are not depositing the same. 

It was argued by President’s Counsel Faiszer Musthapha, on behalf of the fifth and sixth respondents, that the said investor, namely ZRA Holdings, has acted fraudulently in breach of the investment agreement and also in breach of the trust and faith of the depositors.  

It was also argued on behalf of the depositors that the investor has not duly provided the affidavits, as required by the court to the effect that the respective investments are unencumbered. 
The court directed for a report to be called from the Central Bank, investigating into the affairs of the investor pertaining to the respective accounts that were temporarily opened on behalf of the investor, as claimed by the investors’ attorneys and the relevant bank drafts that were issued.  

Senior Counsel Ian Fernando, with Counsel Chavindr iPerera and Ushira Dharmaratne appearing on behalf of the depositors, moved for a report to be called urgently and for the matter to be refixed for a short date. 
Accordingly, the matter was fixed on May 9, 2022, to be mentioned. 

Chandaka Jayasundara PC appeared for the fifth and sixth respondents. Anuja Premaratna PC appeared for the Depositor’s Association of Finance and Guarantee Property Developers (Pvt.) Ltd. Senior Counsel Saman Liyanage appeared for the eighth respondent. Senior Counsel Hejaaz Hizbullah appeared for the 14th respondent. Senior Counsel Sandamal Rajapaksha appeared for the fifth petitioner. Senior Counsel Vincent Perera appeared for the Depositors Association of FGPDL and RECL. Counsel Anurangani Singh appeared for the F&G Depositors Association. Farman Cassim PC appeared for the 18th respondent and Priyal Wijayaweera PC appeared for ZRA Holdings (Pvt.) (Ltd). Senior Counsel Nuwan Bopage appeared for the second petitioner.