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7-billion-rupee diamond heist; Madush splls the beans before being shot

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Madush immediately worked on a plan to retrieve the diamond. He was known for his meticulous planning and attention to detail. The attack on the prison bus at Kalutara which claimed the lives of seven including Samayan, the attack on Police Inspector Neomal Rangajeewa of the Anti-Narcotics Division and other officers in Piliyandala were all on plans devised by Madush.

by Hemantha Randunu

(Translated by Sandil Mallikarachchi)

Patrick, an international businessman was holding a 720-carat diamond intending to sell it through an Austrian broker named Morrison. This diamond was to be auctioned in France but that did not happen.

It was then sent to Sri Lanka for safekeeping until the next auction was due. But Morrison was detected at Katunayake by the customs. After intense negotiations a deal was struck. Morrison and was to be released on the payment of a five million rupee bribe and the diamond was retained. But he didn’t have the cash and was released on the promise of returning with the bribe.

Meanwhile the corrupt customs officers found that the diamond was worth much more than they thought at first. So, when Morrison tried contacting them after raising the required sum, all their contact numbers had been disconnected.

Morrison and Patrick were left destitute and hopeless in an unknown country. It was then, that Ranasinghe, a crook living in Dubai and known to shady circles, came into the picture. Morrison had known him for some time. Ranasinghe was involved with Makandure Madush, the godfather of the Sri Lankan underworld.

After talking to Madush about the problem, Ranasinghe assured Morrison that they would find the diamond. But it was going to cost them dearly. Following prolonged discussions an agreement was reached. Patrick and Morrison would have to pay Rs. 400 million to get the diamond back. Ranasinghe and others who will be involved will also have to be paid. Thereafter the search for the diamond began and Ranasinghe returned to Sri Lanka.

Meanwhile, the custom officials who seized the diamond were trying to sell it off. One of them had a relative, who was a gem businessman. This is how a Rs. 7 billion diamond reached a gem merchant in Arawwala commonly known as Jaye Mudalali. When Jaye Mudalali started looking for potential buyers for the stone, the word reached Madush via his henchmen.

Madush immediately worked on a plan to retrieve the diamond. He was known for his meticulous planning and attention to detail. The attack on the prison bus at Kalutara which claimed the lives of seven including Samayan, the attack on Police Inspector Neomal Rangajeewa of the Anti-Narcotics Division and other officers in Piliyandala were all on plans devised by Madush.

He recruited his closest and most trusted allies for the job. Thusitha Maduranga alias Matara Malli, and Kalum Indika alias Kavuma were his first choices. Matara Malli was infamous in the South and had been released on bail a few months before. Madush had known Kavuma from his early days as a bus driver in Makandura.

The plan was to take grab the diamond during a business meeting organised by Ranasinghe with Jaye Mudalali. An Austrian named George was brought to Sri Lanka to impersonate a foreign buyer. The robbery was to be carried out by Madush’s team, posing as police officers. The firearms, uniforms and everything else necessary was arranged by Madush from Dubai.

As the first part of a masterplan, Ranasinghe met Jaye Mudalali in the guise of a wealthy businessman and an international broker. Eager to sell the diamond, Jaye Mudalali bought the story that the potential buyer, George, was a wealthy gem businessman from Dubai intent on buying the diamond at whatever cost.

On August 3, Ranasinghe went to see Jaye Mudalali in Arawwala with George. He arranged another meeting on the two days later, claiming that George wanted to check the stone using some of his machines .

Jaye Mudalali shared the news of this new buyer with several of his mates who too wanted to meet this potential client to show him some of their own gemstones. On D-day, Aug. 5, 2018, Jaye Mudalali and his friends waited for the buyer with the near priceless diamond and a number of other valuable stones at Jaye’s Arawwala home. Ranasinghe arrived there with George and the latter began re-examining the 720-carat diamond.

Suddenly a white van stopped by the gate and several persons in police uniforms and plainclothes stormed the house. “Nobody move! We are from the Police Narcotics Unit”, bellowed Matara Malli wielding a pistol and posing as a policeman. He alleged that George was an international drug trafficker and that the police had been tipped off that a big drug deal was going on.

They handcuffed George proceeded to search the house. When Jaye Mudalali resisted and tried to hide the diamond, Matara Malli knocked him out with his pistol butt. He then snatched the diamond. The robbers locked up Jaye Mudalali and other merchants in a room and looted the valuables in the house for about half an hour. Other gems brought for display were also robbed.

The group then left the scene, taking the Austrian and Ranasinghe with them. But George and Ranasinghe got down at Maharagama, and returned to the crime scene to divert suspicion.

When the police launched an investigation into the robbery, Jaye had many tales to tell about how he came across the diamond. But the true story never came out. The day after the heist, the two Austrians and Ranasinghe fled to Dubai with the diamond. That is how the plundered diamond fell into Madush’s hands. Madush later gave it to Patrick after making sure that the agreed Rs. 400 million would be paid after the diamond is sold.

About three weeks after the robbery Piliyandala police arrested a heroin dealer. It was later revealed that he had close connections to Madush. Following his leads, the Mirihana Special Crimes Unit interrogated the famed singer Amal Perera and actor Ryan Van Rooyan, regarding the whereabouts of the diamond. But no substantial information was revealed.

Some time later, Matara Malli was also arrested by the police. When questioned, he said that the diamond had been taken to Dubai.

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