Sunday, August 03, 2014

Vajira House update

I will never invest in a Sri Lankan company for as long as I live- heres why:

Its been more than 7 years since I bought debentures from Vajira Houses and they failed to return the capital I invested

the COURT ORDER was given in 2009 and yet there is no payment to me
Ive been ​calling practically twice a week since December 2013, to get the money 
General manager Harendra politely gives various dates .one time I was ill and didnt call him for a week or two and when i next called he said " oh you havnt called me for sometime" so I can imagine what a joke we depositors are 

I called the Marketing manager August 4th and told him that im doing every thing i can in my small way to tell people the truth about their company

A small action was taken today, the lawyer Harshani phoned me today (0718688261) and said a deposit would be made 29th August 2014
I will update here what happens 

Heres more of the truth about the case 

Financial Times

Vajira House Builders engages in confidence building with depositors after Court order

By Bandula Sirimanna

In a move to re-build confidence and repay borrowings taken from disgruntled depositors, Vajira House Builders (Pvt) Ltd, a troubled building construction company, has obtained a directive from the Colombo Commercial High Courts to conduct a meeting with depositors and to obtain their consent for a re-payment plan. Colombo High Court Judge Gamini Amarasekera has directed the company to report the progress of these meetings when the case will be taken up for hearing on November 26.

The Court was informed that the company has conducted meetings with 56% of depositors out of the total number of 270 depositors. An official of the company told the Sunday Times FT that 76% of depositors have agreed to their repayment plan and they will repay the money amounting to Rs186 million within two and half years commencing from January next year. He said that the construction industry has taken a huge beating over the past two years and the building sector is at a standstill even now.

However Vajira house Builders (Pvt) Ltd is managing its affairs at a satisfactory level in the face of the adverse impact of the global downturn, especially on the real estate market. Several depositors alleged that the company deceived them by accepting deposits from them as investments for property development projects and issuing them with borrowing certificates.

Depositors have written a letter to the Secretary to the President, the Inspector General of Police and the Governor of the Central Bank informing them that the company has promised to pay 22 to 25 % interest for their deposits taken as investments for house building project at Malabe in 2007 and it has stopped the payment of interest and refused the repayment of their capital as it is facing liquidity problems. Therefore they urged the authorities to intervene and find a redress to their problem.