ECONOMYNEXT – Sri Lankan government has taken over controversial Krrish tower project after the Indian investor-led project failed to meet the deadline, State Minister for Urban Development and Housing Arundika Fernando said.
The $650 million mixed development project was initiated during the second term of former President Mahinda Rajapaksa. But it has been marred with controversy with allegations of secret payoffs to several VIPs including Rajapaksa’s legislator son Namal, who had denied the claim.
Minister Fernando said the government is now going ahead with its attempt to find a new investor to complete the project and start the operations.
“The government has already taken over this project. Now we want to find a (new) investor,” Fernando told reporters at a media briefing in Colombo on Thursday (26).
“We gave the deadline to the private sector who was involved in the project. They were given a license for the construction and that license has also expired now,” he said.
He said the Urban Development Ministry has already appointed a committee headed by W S Sathyananda, the secretary to the Ministry.
“Now it is our (state) asset, both the land and the building. The government does not have the money to complete the project. We are in talks with some foreign countries over this. The convenient way is to hand it over to an investor to complete the rest of the project.”
The UDA gave the 3.7-acre land located at the heart of commercial capital Colombo for a 99 year lease at 5 billion rupees in 2012.
The investor was Indian Krrish Group, which has interests in distilleries, breweries and real estate development in India. Originally, the project was scheduled to be completed in 2016 with Chinese constructor Zhongtian Construction awarded the building of the property.
The project originally consisted of two five-star hotels, two apartment blocks and two office complexes.
BLACK MONEY WON’T BE RETURNED
“The UDA has given one of the best available lands in Colombo. The investor has taken money from the public for residential apartments. So, they (investor) had taken money for the condominium from the public. Due to failure to deliver the promised apartment, there are some court cases against the investor,” Fernando said.
“We want to complete this project. We gave a deadline to them and said we will cancel their license if they do not deliver on time. But that deadline is already over.”
“There is a group of people who have given money (for apartments). There are some who have invested their black money. We don’t intend to return that money. We can’t help that. If they come with an agreement only their request will be discussed.”
The previous government headed by former president Maithripala Sirisena in 2015 investigated if there had been misappropriation in the project.
Namal Rajapaksa MP faced allegations of misappropriating 70 million rupees granted by Indian investor for the development of rugby in Sri Lanka. Rajapaksa has denied any wrongdoing.
Krrish Square was originally planned to have the base of a 10 floor podium for car parking, high end retail stores, shopping complexes etc.
The four high rise towers were to be built as a vertical city.
One of the residential skyscraper was to have the height of podium (10 floors) plus 80 floors and other two would be of podium plus 55 floors.
The fourth tower was to have the height of podium plus 85 floors and was expected to house the seven-star hotel, commercial office spaces etc.
“There is also a threat because the building is dilapidating,” Fernando said.
“So, we must complete this project. We have started assessing the building since we have taken over. We have already sought an engineering report on the building. This is why we have appointed a committee to look into this.”
“We must tell the truth to the investor when we are giving through either a due diligence or situational report.” (Colombo/Oct 26/2023)