Fugitive mastermind in South Asia’s largest VAT scam attempts to reopen case in CA: AG

Colombo, June 9 (Daily Mirror) - The Supreme Court today issued an immediate stay order halting further proceedings in the Court of Appeal concerning the 8th accused in South Asia’s largest Value Added Tax (VAT) fraud case. 

The move comes after the Attorney General revealed what was described as a blatant abuse of the court process by the fugitive accused, Kamil Kuthubdeen, who has been evading justice for over a decade.

Appearing before a bench comprising Justices Janak De Silva, Mahinda Samayawardena and Arjuna Obeyesekere, Additional Solicitor General (ASG) Shanil Kularatne informed the apex court of an “unprecedented” development in the Court of Appeal: A third-party petition filed on behalf of Kuthubdeen, seeking to re-open the very judgment that convicted him, while his appeal remains pending before the Supreme Court.

Kuthubdeen, the alleged mastermind of the Rs. 3.9 billion VAT fraud, has been absconding since the indictment was filed in 2007. 

An international red notice remains active for his arrest. Despite his fugitive status, a third-party petition and affidavit were filed before the Court of Appeal on July 27, 2024, requesting the appointment of a five-judge bench to revisit the 2023 majority judgment that upheld his conviction.

The case, initially tried before the High Court over five years, involved 14 accused who were found guilty of orchestrating a massive VAT refund scam by submitting fraudulent claims to the Department of Inland Revenue. The trial featured over 200 witnesses and 3,000 marked documents. All accused were convicted, and their assets frozen due to unpaid fines. Kuthubdeen, regarded as the chief architect of the fraud, was convicted in absentia.

The Court of Appeal heard the appeals in 2023, where a divided bench Justice Bandula Karunaratne acquitting and Justices Sampath Abeykoon and R. Gurusinghe affirming the convictions, delivered its majority judgment on December 13, 2023.

While Kuthubdeen’s special leave to appeal is still pending before the Supreme Court, the Attorney General’s Department raised alarm over the new Court of Appeal petition, warning of serious due process violations. ASG Kularatne, joined by Deputy Solicitor General Maheshika Silva, emphasised the impropriety of revisiting a concluded judgment in a court that has already ruled on the matter. They alleged that despite State objections, the petition was heard before the then-President of the Court of Appeal Justice Karunaratne, who later recused himself. 
The Supreme Court was subsequently apprised of these developments by the Attorney General’s Department, which characterised the petition as a calculated attempt by Kuthubdeen to manipulate the judicial process.

The Supreme Court responded decisively, granting the Attorney General’s request for a stay order to prevent any further action in the Court of Appeal relating to the case.

President’s Counsel Upul Kumarapperuma appeared for the 8th accused.