Court release Mahendran, others from Public Property charges on bond scam

Central Bank former Governor Arjuna Mahendran

Central Bank former Governor Arjuna Mahendran, and nine other individuals who were accused in the first Bond Scam case of 2015 were released from the charges filed under the Public Property Act, by the Colombo Permanent High Court Trial-at-Bar yesterday.

The court ruled that it cannot proceed with the charges filed under the Public Property Act by the Attorney General against the 10 people accused of committing the Bond Scam of 2015. The verdict was delivered by a 2/3 majority in the Court. The case was called up in the presence of Justices Chamath Morias, Damith Thotawatte and Namal Balalle.

President’s Counsel Gamini Marapana had filed a preliminary objection with the court, noting that charges cannot be charged against a company under the Public Property Act and pointed out that the Perpetual Treasuries Ltd. which was also named as an accused is a company and not a person.

After the court accepted the objection, the defence counsel also argued that as a majority of the other accused at Directors of Perpetual Treasuries Ltd., it applies to them as well, and therefore the charges under the Public Property Act filed against them cannot be taken forward.

Thereby, the Justice of the Permanent High Court Trial-at-Bar ordered for all other charges to be taken up for a trial, leaving the charges filed under the Public Property Act on 16 December 2022.

The case was filed against the 10 accused under 23 counts for committing the Bond Scam on 27 February 2015 and causing a loss of Rs. 688 million to the Government.

The accused personal include; former Central Bank Governor Lakshman Arjuna Mahendran, former Central Bank Deputy Governor P. Samarasiri, Perpetual Treasuries Ltd. Arjun Joseph Aloysius, Kasun Palisena, Geoffrey Joseph Aloysius, Pushpa, Chandra Gunawardena, C. Ranjan Hulugalle, Muthuraja Surendran and Ajahn Gardiye Punchihewa.