Assets of Ceylinco, F&G Companies increased upto Rs.9 billion - Parties tell SC

• Assets increases at F&G companies with the effluxion of time have  created a situation that they could pay more than 100% dues to the  depositors 

By Lakmal Sooriyagoda   

Several parties including a Depositors’ Association attached to Ceylinco F&G Companies have informed Supreme Court, the Rs.4 billion assets that belonged to the Ceylinco F&G Companies in 2009, have now been increased up to Rs.9 billion, with time.   

Senior Counsel Ian Fernando appearing on behalf of the Independent Association of Depositors and President’s Counsel Faisz Mustapha appearing for the 6th petitioner made this revelation when the Fundamental Rights petition filed on behalf of the depositors attached to Ceylinco F&G Companies was taken up before Supreme Court.  

They informed Supreme Court that the assets of Ceylinco F&G Companies have now been increased up to Rs.9 billion, at the moment these companies are liable to pay a sum of Rs.7 billion to the depositors. They further submitted to court that assets increases at F&G companies with the effluxion of time have created a situation that they could pay more than 100% dues to the depositors, who are suffering for a long period of time. Therefore, Fernando and Mustapha moved the Supreme Court to make an appropriate order.   

It was also contended that the Rs.500 million bought from ZRA Holdings Pvt. (Ltd) to regenerate the F&G Company, is only a minute amount as there is already Rs. 9 billion worth of assets. In other words the ZRA Rs.500 million is negligible and they need not be taken into account.  It was further alleged that the report pertaining to the list of depositors and the amount of payment that needs to be made on the last occasion being the date of 23rd March 2023, has not yet been complied by the ZRA. Counsel maintained that whatever order made for ZRA to carry out, nothing has been completed by them. It was brought to the notice of court that ZRA has not followed the order made on 16th March 2023. Faisz Mustapha PC and Senior Counsel Ian Fernando requested the court to inform ZRA to carry out the guidelines given by the Supreme Court.