All systems go for Krrish square project construction

The US$ 650 million-Krrish square project construction is now underway following the final payment (about Rs. 690 million or US$5.3 million) plus fines for the delayed payments being made, top officials of the Board of Investment (BOI) and Urban Development Authority (UDA) confirmed to Business Times (BT).

Krrish Transworks Colombo (Pvt) Ltd, local company of the Krrish Group signed a supplementary agreement with the BOI on November 29, 2016 to complete the project in 48 months, BOI chairman Upul Jayasuriya said on Wednesday in an interview with the BT.

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(Source: Sunday Times)

Krrish Needs green light from AG, UDA - BoI Chief

The highly-debated and long-delayed Krrish project – which recently recommenced initial construction work,  is yet to be given green light by the government as it had not completed its payment obligations due, The Sunday Leader learns.

However once cleared by the Urban Development Authority (UDA) and the Attorney General’s Department, the project has no impediment from the country’s investment promotion agency – the Board of Investment (BoI) of Sri Lanka, BoI Chairman Upul Jayasuriya told The Sunday Leader.

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(Source: Sri Lanka Mirror)

Krrish Tower project: FCID probe in India

A multibillion rupee project to construct the Krrish Towers, a high rise office cum apartment complex opposite the Colombo Hilton, has become the subject of a detailed inquiry by the Financial Crimes Investigation Division (FCID).

Hambantota District parliamentarian Namal Rajapaksa, described as a prime mover of this project, has been questioned in this regard by FCID detectives.

This week, FCID chief senior DIG Ravi Waidyalankara flew to India to record statements from those who were reportedly the Indian collaborators in the controversial project.

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(Source: Sunday Times)

Krrish to start Phase 1 of the long-delayed mixed development project

Indian real estate Company Krrish Group has forwarded the plan for the first phase construction work of its long-delayed US$650 million mixed development project at 4.3 acre British era heritage Trans works building site in Fort, a top official of the Board of Investment (BOI) said. The BOI is in the process of studying the proposed plan under the Colombo Krrish square mixed development project including the investment for this purpose, newly-appointed BOI Director General Duminda Ariyasinghe told the Business Times.

The project has been downsized from its earlier status to two towers under the present circumstances, official sources revealed.
The construction of the first phase is expected to begin shortly, a UDA official said.  He said that the under the first stage the company will reconstruct the Transworks Building in Colombo to international standard to set up an upmarket shopping area. According to the proposed new plan this will be an international style shopping mall in Sri Lanka, he disclosed.

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(Source: Sunday Times)

Krrish finally seals Transworks House land deal in Colombo

Indian real estate company Krrish Group has finally sealed the controversial Transworks House land deal, that drew allegations of huge pay-offs to politicians and officials, signing a lease agreement with the Urban Development Authority (UDA) in October.The new agreement, not known to the public until officials revealed it to the Business Times (BT) on Thursday, involves a block of land slightly smaller in size than the earlier proposed deal. Officials at the Board of Investment (BOI), which has been involved in the negotiations, said they were unaware of the new development but were checking on the query by the BT.

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(Source: Sunday Times)

FCID Commences Probe On Krrish Deal

The police Financial Crimes Investigations Department (FCID) has commenced an investigation into the controversial Krrish Transworks Colombo (Pvt) Limited project that was initiated during the former Mahinda Rajapaksa regime. Several VVIPs of the former regime are hence expected to be interrogated by the FCID in the next few weeks.

The US$ 650 million Krrish square mixed development project in Colombo was aimed at constructing four high-rise buildings containing a luxury hotel, apartments, malls and office space covering a land space of 4.3-acres on a 99-year lease from the Urban Development Authority (UDA).

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(Source: Sunday Leader)

Krrish to break ground for mixed development project soon

Indian real estate company Krrish Group will break ground soon for its long-delayed US$650 million mixed development project at Transworks House in Fort as the company has received the approval of the Urban Development Authority (UDA) last week to go ahead, local Krrish officials revealed.

The local company Krrish Transworks Colombo (Pvt) Ltd, a subsidiary of Indian real estate company Krrish Group, will launch construction of the proposed first and second phases of the project within the next two months, they said.
The company has paid Rs.4.4 billion out of the full lease payment of around Rs.5 billion to take over the 4.3 acre land on 99 year lease.

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(Source: Sunday Times)

New Govt. clears Krrish deal: Preliminary work starts

The new government, largely controlled by the United National Party (UNP) whose parliamentarians were vociferous against the Krrish deal when they were in opposition, has given the go ahead to the Indian-based company to commence the long delayed and controversial Krrish Square mixed development project, a top official confirmed.

Urban Development Authority (UDA) Chairman Ranjith Fernando told the Business Times that preliminary work on the project at the prime 4.3 acre land which housed the Transwork House, a British era heritage building in Fort, has begun following the clearance given by the government despite the Krrish group still not paying the final due of Rs.589.7 million with accumulated interest at 12 per cent.

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(Source: Sunday Times)

“Our plans are still on,” says Krrish official at the office reception

Officials at the controversial Krrish project in Fort, which is yet to receive the full payment for it to get off the ground, say their project is still on.
The project has been suspended for many years as a final payment amounting to 10 per cent of the full lease and interest payments thereafter for payment delays.

With the entry of a new government and speculation about the future of this project which drew allegations of corruption by certain government officials, a charge strongly denied by the company, this reporter visited the Krrish office on Level 35, West Tower World Trade Centre Echelon Square in Colombo on Thursday.

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(Source: Sunday Times)

Krrish group faces stay or depart directive

Krrish group faces a stay or depart directive issued by the government that allows them time till September – a final deadline – to pay the Colombo Fort Transwork square balance land lease payment, Investment Promotion Minister Lakshman Yapa Abeywardena told journalists in Colombo on Thursday.

The company had been given time till July 15, another of the many extensions it has received, to complete the land lease deal of around Rs. 5 billion of which a sum of Rs.4.4 billion has already been paid by them to the Urban Development Authority (UDA).In what is seen as the final deadline, Minister Abeywardena said, “If the company fails to complete payment before September, the final deadline, and ensure that the project would be completed in the given time frame, the project would be cancelled.” 

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(Source: Sunday Times)

No word from Krrish on final payment, says Minister

India’s Krrish Group, despite government’s repeated extensions and reprieves, is still silent on the completion of its due payments to lease the 4.3 acre Transwork Square property in Colombo Fort, 21 months after signing an MOU with the Urban Development Authority (UDA).

Investment Promotion Minister Lakshman Yapa Abeywardene told reporters in Colombo on Thursday that the Krrish group or its local representatives have not made any representations on this matter to him or the BOI and he is awaiting a response from them.Five extensions have been given so far for the final payment of Rs.639.5 million to be made to close the land lease deal, he added.
The company has so far paid Rs. 4.3 billion of the Rs. 5 billion upfront lease rental.

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(Source: Sunday Times)

Krrish project on amidst payment delays

Despite a delay of 17 months, the Urban Development Authority (UDA) is confident that the Krrish Group will complete its due payments to lease the Transwork Square property for its long, overdue mega development project.

UDA Chairman, Nimal Perera told the Business Times that Krrish must make a payment of Rs.589. 7 million to close the land lease deal.
The total payment made by them up to now is Rs. 4.4 billion, he said adding that the full payment due is Rs. 4.995 billion.

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(Source: Sunday Times)

Krrish must complete project within 3 years or exit : Minister

The government would be forced to cancel the Krrish square project in Colombo if it is not completed within 3 years, a senior government minister said.

“Although the Delhi-based investor requires making a major effort to avoid the dire consequences of failure to make the final payment nothing is impossible if you have money”, Minister of Investment Promotion Lakshman Yapa Abeywardena told a media conference in Colombo this week. More than 18 months have passed since Krrish signed the agreement (August 2012), leaving 2 1/2 years to complete the final lease payment and construction.

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(Source: Sunday Times)

Five SDPs including Krrish still at ‘identification’ stage

Though Sri Lankans can challenge strategic development projects (SDPs) which include Shangri La, Crown (Casino project) and Krrish when the first gazette is issued, there hasn’t been any such opposition.

People are not exercising their right of making written objections or representations regarding such projects due to lack of awareness or apathy, a top government administrator said, adding that there is transparency in such project approvals. A streamlined procedure including the entertaining of public representations is followed by the line ministry before parliamentary approval is sought to implement SDPs.

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(Source: Sunday Times)

Krrish site to be offered to CHOGM business delegates

The Government is to offer the Transwork site in Colombo now leased out to India’s Krrish group to potential investors attending the Commonwealth Business Forum, official sources said.

This is because the company has failed to make the final lease payment and amidst accusations of corruption linking a top state official to the deal.

Some of this money has been returned to apartment owners who requested the money back after the project ran into difficulties. But there are others whose money is still with Krrish.

Apart from that, the official said, that without a formal approval of the building plan it was somewhat illegal to sell the apartments.

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(Source: Sunday Times)

Krrish project now confronted with environmental issues

The Krrish square mixed development project tainted by scandalous financial deals is yet to get the Environmental Impact Assessment (EIA) approval to kick-start the project, informed sources said.

The Transworks building site at Colombo Fort leased by Delhi-based group Krrish is environmentally not suitable for a mega mixed development project, environmental experts have said. The Business Times learns that a leading environmental consultancy service which carried out a preliminary EIA has concluded that the site located in the heart of Colombo Fort was not feasible for such a mega project as it will create heavy vehicular traffic in peak hours and environmental pollution due to emissions and waste disposal. Recommendations made in the EIA report have not been followed by the investors, Environment Ministry sources said adding that EIA approval on drawings and building plans is essential before the test filling.

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(Source: Sunday Times)

Krrish has paid only 10 % of lease for prime Fort property, admits Govt.

The Government on Friday conceded that M/s Krrish Group India has only made an initial deposit of Rs. 499.5 million or 10 per cent of the total lease premium for the Transworks House property in Colombo Fort.

Nimal Siripala de Silva, Leader of the House in response to a question raised by Opposition Leader Ranil Wickremesinghe said as a follow up action after making the initial deposit, the Urban Development Authority (UDA) has taken steps to vest the Heritage building site to seek the final approval to sign the lease agreement.

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(Source: Sunday Times)