High Court Trial-at-Bar orders release of several accused from 11 charges in CB bond auction case

By AJA Abeynayake

Colombo High Court Trial-at-Bar yesterday ordered the release of several accused, including former Finance Minister Ravi Karunanayke and former Central Bank former Governor Arjuna Mahendra, from 11 charges out of 22 in connection with the Central Bank bond auction held on 31 March, 2016.

Colombo High Court Trial-at-Bar held that public property charges against the accused could not be maintained. Indictments had been filed against Perpetual Treasuries Private Ltd (PTL), former Finance Minister Ravi Karunanayke, CBSL former Governor Arjuna Mahendran, Perpetual Treasuries Limited (PTL) beneficiary owner Arjun Aloysius, PTL Chief dealer Kasun Palisena, Chairman of PTL Jeffrey Joseph Aloysius, Chitta Ranjan Hulugalle, Muthuraja Surendran, Ajahn Gardiye Punchihewa and Badugoda Hewa Indika Saman Kumara in connection with bond auction held on March 31, 2016.

The case against seventh accused Ranjan Hulugalle was dismissed on preliminary objections raised.

President’s Counsel Anil Silva, Counsel Asela Serasinghe, Hafeel Farisz, Sahan Kulatunga and Vishwaka Peiris appeared for the seventh accused.

The Attorney General’s stance regarding the future cause of action to be informed on 26 Jan. 2022.

The Attorney General had alleged that the PTL had been using the Central Bank’s important undisclosed information to alter the final outcome of the Treasury bond auction and it had a huge impact on the overall national economy as a result of the subtle; the systematic conduct of the offences related to the fraud and had caused injustice to other primary sellers in the bond market, and the PTL had acted cunningly and made a huge profit and conspired to cause a huge loss to the government.

The case was postponed until 26 Jan. 2022.