20 April 2022 12:49 am
State-owned People’s Bank yesterday acquired Arjun Aloysius-owned W. M. Mendis & Company’s distillery located in Kaluwamodara, Aluthgama, after the company defaulted on its debt repayments, according to industry sources.
During 2015-2019, People’s Bank had granted credit facilities to W. M. Mendis & Company Limited. However, the company defaulted on the credit facilities in 2019-2020, and it was transferred to non-performing
loans category.
Consequently, the board of Directors of People’s Bank had approved a resolution to auction the mortgaged distillery located in Aluthgama moving ahead with the debt recovery process.
Accordingly, auction of the mortgaged property was performed by M/S Schokman & Samerawickreme at 11.00 a.m. yesterday. However, in the absence of any successful bidders to the mortgaged property, People’s Bank acquired the distillery for a nominal value by way of parate execution. The distillery is located at Kaluwamodara, Aluthgama on a 2-acre 1.0 roods and 28.50 perches land block and is valued over Rs.250 million.
The Excise Department in 2018 canceled W.M. Mendis & Co. Ltd’s license for evading tax payments. Although, the government in 2021 momentarily restored the license, the decision was later revoked by President Gotabaya Rajapaska amid opposition from some members of his Cabinet
of Ministers.
W.M. Mendis & Co Ltd. was established over sixty years ago as a liquor manufacturing company and Arjun Aloysius acquired the controlling stake in the liquor firm in 2011.