A subsidiary of the Abans Group of Companies has taken the BOI to court on an issue where they claim to have been wrongfully treated by this state organization. They say that there is a political motive behind BOI’s actions.
In a plaint filed in the District Court of Colombo, Crown City Developers (Pvt) Limited has said that persons holding high political office with business connections as well as affiliations to entities which are in direct competition with them, would greatly benefit if Crown City were to lose this case.
At the centre of this controversy is a piece of land 14 acres in extent, which is the unutilized part of a larger parcel allocated to the company by the BOI to develop a Rs. 300,000,000 warehousing and logistics centre. The BOI by their letter dated 18th of November 2014 had approved and confirmed that Crown City’s Warehouse Building and Logistics Centre conforms to their requirements.
However, by another letter dated the 11th of March, the BOI had ordered Crown City to return the unutilized land without any prior notification of their intention to terminate or without giving any proper explanation to the effect that the company was in breach of the agreement entered into. The letter has only said that the Plaintiff had “failed to fulfil the terms and conditions of the said Agreements which (the) Enterprise has entered into with the BOI.”
Crown City Developers is engaged in warehousing business and has a logistics centre at Kadonkelewatte, Seeduwa. The Company, which has an annual turnover of over Rs. 1 Billion, belongs to the Abans Group whose annual turnover is recorded as exceeding Rs. 30 Billion. Abans, which has become a household name employs 5000 people directly and another 3000 indirectly while Crown City employs around 150.
‘The Nation’ learns that the said ‘competitor’ has been making overtures to Crown City for a long time in oder to obtain the said property. The case is to be taken up on June 5, 2015.