News
Buyers ditched as developer abandons proposed ‘CM Towers’ condominium project

‘A Rs. 600mn rip-off’
by SURESH PERERA
Scores of prospective buyers of housing units at a proposed condominium project in the outskirts of Colombo have been ripped off for at least Rs. 600 million in, what was been described, as a “major scam” by a developer whose company now remains shut.
In the backdrop of a private sector bank announcing moves to auction the 42-perch site of the envisaged condominium complex as the developer had raised Rs. 120 million in capital financing against the property, distraught victims of the swindle bemoaned that they have now “lost all their hard-earned savings”.
“There are around 52 prospective buyers, most of whom dished out anything between Rs. 5 and 10 million each as downpayment for the apartments”, says Gehan Samaranayake, president of ‘Ramanathan Avenue CM Condo Buyers’ Association’.
He said the developer M/s Civi-Mec Construction (Pvt) Ltd., started selling apartment units for the proposed CM Towers condominium project at No. 14, Ramanathan Avenue, Dehiwala, in 2014 and began construction the same year with the approval of the Dehiwala Mount Lavinia Municipal Council.
At that juncture, approval was given to the developer for a G+17 storied housing complex encompassing 112 middle class apartment units with four floors for parking vehicles. The developer of the project, M/s Civi-Mec Construction, had only one director with a registered office at W. A. Silva Mawatha, Colombo 6. The land earmarked for the housing project was mortgaged to a private sector bank to raise funds for the proposed condominium, Samaranayake noted.
“After entering into sales agreements, we paid a considerable downpayment and continued honoring the subsequent monthly installments to meet the balance as the developer laid the foundation with piling in line with the approved G+17 floor building’, he recalled.
“However, with the change of government in 2015, we were told the new administration restricted the number to nine residential floors, and the reason adduced was that some officials responsible for granting approvals were demanding substantial inducements to give the green light for the original plan of G+17 floors”, the Association’s president asserted.
He said at that point, the private bank, which agreed to finance the 112-housing unit project, stopped further funding as it was considered non-viable to invest on heavy foundations and have only nine residential floors with 64 condominium units, instead of 17 floors.
The developer abandoned the project at this stage in 2018 and stopped paying the loan installments to the bank, closed his office and went into hiding. The desperate buyers made complaints to the Police, CID and the Fraud Bureau, with some opting for civil cases as well. Subsequently, the CID arrested the director of Civi-Mec, who was remanded and later released on bail by the Mount Lavinia Magistrate’s Courts, Samaranayake noted.
“There are many of us in the Association, who have paid more than Rs. 10 million each for apartments and according to our records, the developer has collected from the known buyers alone Rs. 600 million, without any interest calculated”, he claimed.
He further said that the bank, citing the default of Rs. 120 million loaned towards the project, exercised the powers vested on its board of directors and initiated the process of recovering the loan by auctioning the property by the end of this month.
Vacating an earlier stay order, the Commercial High Court has allowed the bank to auction the property to recover an accumulated Rs. 160 million, inclusive of other costs, he said, while adding that the bank has already given notice of the auction on October 28, 2020.
“Most of the prospective buyers of this proposed middle-class condominium complex are retirees, who had invested their life’s savings on what they thought would be their ‘dream home’. All their hopes have now been shattered”, Samaranayake stressed.
Repeated attempts by The Sunday Island to contact the
director of Civi-Mec Construction on the phone number listed on its website were futile as there was no response.
As indicated by the ‘Ramanathan Avenue CM Condo Buyers’ Association’, the developer’s office in Colombo 6 remained closed. As a result, there was no possibility of contacting the director concerned for comment on the issues raised by those who have now been left in the lurch after forking out millions of rupees.
“If the buyers of the condominiums had entered into sales agreements, we can initiate legal action against the developer”, says Sarana Karunarathna, Chairman, Condominium Management Authority.
“They can write to the Authority so that we can pursue the matter”, he noted, while adding that he was unaware of the developments until The Sunday Island brought the matter to his notice.
News
NPP bags CMC in secret vote; SJB, allies disappointed with bureaucratic action

National People’s Power (NPP) councillor Vraie Cally Balthazaar yesterday (16) won a controversial secret vote to secure the mayoral seat at the Colombo Municipal Council (CMC). She received 61 votes while Riza Zarook, fielded by the SJB-led Opposition, obtained 54 votes.
Two votes were rejected. The CMC consists of 117 members and the winner needs to secure at least 59 votes. At the 6 May Local Government elections, the NPP won 48 seats in the CMC while the SJB had to settle for 29.
At the onset of yesterday’s proceedings, both the SJB and UNP demanded that an open vote should take place while the NPP asked for a secret vote. However, after noisy haggling over the issue for 30 to 40 minutes suddenly some Opposition members, and the NPP, declared they had reached consensus for a secret vote though some were heard insisting on an open vote.
The secret vote was conducted by Commissioner of the Department of Local Government of the Western Province, Sarangika Jayasundara. In terms of the Local Government law, the type of voting-‘open vote’ or secret vote, should be decided by a secret vote.
In the run-up to yesterday’s secret vote, both parties repeatedly declared they had the necessary numbers to secure mayoralty.
In a desperate move, the SJB reached an alliance with the UNP (13 seats), SLPP (5 seats) and People’s Alliance (1 seat) to garner support among the Opposition but couldn’t reach the target.
That bid had the support of former Presidents Mahinda Rajapaksa and Ranil Wickremesingh.
In spite of the SJB declaring that the Opposition at the CMC consisted of 69 councillors, the NPP reached consensus with many parties, and independent groups, thereby increasing its tally from 48 to 61 – two votes more than the required number.
The following political parties and independent groups won seats at the CMC: NPP (48), SJB (29), UNP (13), SLPP (5), SLMC (4), Independent Group 3 (3), United Peace Alliance (2), Sarvajana Balaya (2) Independent Group 4 (2) and Independent Group 5 (2). National People’s Party, National Freedom Front People’s Alliance, Democratic National Alliance, Independent Group 1 and Independent Group 2 won one seat each.
Having won the secret vote Balthazaar shook hands with Riza Zarook before declaring that all elected members bore responsibility to serve the people. The new Mayor emphasised the responsibility on the part of all 117 to work collectively for the betterment of the people.
The March 12 Movement has claimed that political parties/individuals are being bribed by those seeking to form administration in hung councils. The civil society grouping has said that while conclusive evidence remains limited, widespread public opinion suggests that financial incentives and other benefits may have influenced the support extended to various parties. Such perceptions, whether confirmed or not, do not bode well for the future of local governance, the group has said.
By Shamindra Ferdinando
News
Quality of private university degrees under scrutiny: PM

Prime Minister Dr. Harini Amarasuriya, on Saturday, said that a fresh review would be conducted of the quality of degrees awarded by private universities in Sri Lanka.
She said that concerns had arisen over the academic standards of some private universities, whose graduates recruited into the Sri Lanka teaching service. The issue had now been identified, and the Ministry of Education had already initiated a review process in response, the PM said.
The Prime Minister said so during a discussion held on Saturday (14) at the Ministry of Education with representatives of teacher and principal unions.
She said the recruitment of graduates had been approved by the previous government and it had been implemented in accordance with the provisions of the Teachers’ Service Minute.
Dr. Amarasuritya said that although those appointments were legally valid, the Ministry had begun reviewing the quality of education degrees offered by UGC-approved private universities and affiliated higher education institutions.
By Chaminda Silva
News
Ex-parte injunction against AAC vacated

Colombo District Judge Sandun Vithana recently issued an order vacating the ex-parte injunction previously granted against Automobile Association of Ceylon (AAC). The order was issued subsequent to the submissions made by the Counsel representing the Association, Executive Committee Members and Secretary.
This was in respect of Keerthi Gunawardena, former Vice President of the Association moving court against the AAC. Gunawardena obtained an ex-parte injunction that temporarily suspended the Association’s decision to terminate his Membership.
The Association’s Counsel told the court that Gunawardena had conducted himself in a manner undesirable and unbecoming of a Member at the 119th A.G.M. of the Association.
It was also noted that there were 37 formal complaints from Members regarding the incident in question. It was also emphasized that the termination of the Membership of Keerthi Gunawardena was made in strict accordance with the Consolidated Revised Rules in force at the Association. The Defence also argued that Gunawardena had provided misleading information to the Courts when seeking ex-parte injunction.
After carefully considering the submission from all parties the D.C. determined that the plaintiff had both suppressed and misrepresented material facts when he initially approached the Courts for relief.
It concluded that the ex-parte injunction should be vacated, thereby allowing the Association’s original membership termination decision to stand.
For the A.A.C. Kuvera De Zoysa P.C. led the team supported by Attorneys-at-Law Samuditha Kumarasinghe and Sanjana De Zoysa instructed by Attorney-at-Law Sanjay Fonseka.
For Association President Dhammika Attygalle, Ikram Mohamed P.C. appeared with Attorney-at-Law Charitha Wickrema. For the Executive Committee Members Chandaka Jayasundera, P.C. with Attorney-at-Law Imaz Imthiyaz, for the Association Secretary, Devapriya Hettiarachchi, Sanjay Rajaratnam P.C. appeared with Attorney at Law E.S.Jayasinghe.
The Plaintiff Gunawardena was represented by Attorneyat-Law Asthika Devendra instructed by W.M.D.M.B. Wasala.
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