8/6/2019 Blue Mountain : Property buyers defrauded - Sri Lanka Latest News

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ංහල ழ்
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Blue Mountain : Property buyers defrauded

Blue Mountain :
Property buyers
defrauded
Written by Sta Writer
12 Jul, 2019 | 9:34 PM

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8/6/2019 Blue Mountain : Property buyers defrauded - Sri Lanka Latest News

த number
COLOMBO (News 1st): Recently we uncovered a large
ංහල ழ்
(/sinhala)(/tamil)
of financial frauds allegedly carried out by Blue Mountain
under the guise of real estate. The focus is on a number of
deals done with regard to the maiden 7-star apartment
complex in Colombo which was to be built by this company.

Construction began for ”Pitabaddara Udagalhena school ” the

7-star apartment complex in Bambalapitiya on the 19th of
January 2019. When construction began for this project it was
described as a mega project consisting of 616 apartments, 50
floors divided between two towers, equipped with a helipad,
and was advertised as one of the largest condominium
projects.

Subsequently, in the year 2018, Blue Mountain entered into an

agreement with a Chinese construction company creating
more trust in the project among the general public. However,
it has been months since the construction of the project was
halted. We attempted to contact the numbers listed for
inquiries regarding the Blue Mountain’s Achilleion project. This
was the response we got.

The luxury condominium project which was to be constructed

under a number of phases accepted payments from buyers
and many of the buyers had paid more than 50% of the
condominium’s value. The total value of the money collected
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from the buyers is estimated at about Rs. 2 billion.

ංහලItதhasழ்been
revealed that loans for the Achilleion’ project had also been
(/sinhala)(/tamil)

taken from four banks.

However, the buyers allege that no responsible official of the

company is responding. Allegations are also been levelled
against Blue Mountain for committing large scale financial
fraud when selling off lands in many parts of the country.

They had first mortgaged the land to a bank and then sold it
off to the buyers resulting in the buyer losing both their
money and the plot of land. A land sold in such a manner is
already been prepared to be auctioned off by a commercial
bank. Generally, a bank only grants a sum of 75% of the land
value when it is mortgaged to the bank. If that is the case then
is it not possible to auction off the other plots of land in
question, in a similar manner and use the proceeds of the sale
to settle the bank loans and then use the rest to reimburse
the buyers?

Although the regulations on land transactions are lacking,

authorized commercial banks are regulated by the Central
Bank. Therefore is it not possible for the Central Bank to
intervene and provide some sort of concession to the
customers of Blue Mountain?
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