CB, FinMin undertake to submit due diligence on Golden Key assets
19 May 2015 05:56 am
By Lakmal Sooriyagoda
The Central Bank and Finance Ministry yesterday undertook to submit a due diligence report on Golden Key Credit Card Company in order to ascertain the assets and mode of repayment to the depositors.
"The Golden Key depositors welcomed the ‘endeavour’ of the Central Bank and Finance Minister to repay the depositors but urged them to submit a comprehensive plan in order to consider and agree to the settlement"
Deputy Solicitor General Viraj Dayarathne informed the court that there is a possibility of a ‘settlement’ and therefore said that as a preliminary measure of repayment, due diligence would be carried out.
The Golden Key depositors welcomed the ‘endeavour’ of the Central Bank and Finance Minister to repay the depositors but urged them to submit a comprehensive plan in order to consider and agree to the settlement.
When the matter was taken up before a five-judge bench headed by Chief Justice S. Sripavan, Deputy Solicitor General Viraj Dayarathne informed the court that the Central Bank and Finance Minister have agreed to repay the depositors within a set period and asked for the withdrawing of the case.
However, Hejaaz Hizbulla, representing the petitioner depositors, said that while they welcome the move they were not in a position to withdraw the Fundamental Rights application until a proper plan is submitted to them.
Chief Justice Sripavan said that in the event the petition is withdrawn, there would be no security for the depositors and as such said that a proposal must be submitted for consideration.
The Deputy Solicitor General told the court that due diligence would be carried out on the state and assets of the company as a preliminary step for repayment and a report of it would be submitted on June 4.
The petitioner said that they had no objection to the preliminary step being taken for a due diligence report in lieu of a settlement to the depositors.
Earlier, Finance Minister Ravi Karunanayake and Central Bank Governor Arjuna Mahendra promised repayment to the distraught depositors of the Golden Key fiasco, subject to the withdrawal of the pending cases filed by the depositors.
Hejaz Hizbulla appeared for the petitioner, while DSG Viraj Dayarathne appeared for the state. Romesh De Silva PC appeared for the Seventh Respondent - Lalith Kotelawala.