COLOMBO — CID investigators allege that the businessman financed a disputed land transaction involving forged documents, substantial financial transfers and seven luxury vehicles.
A Nugegoda businessman has been remanded until November 5 following his arrest by the Criminal Investigation Department (CID) in connection with an alleged multimillion-rupee land fraud involving forged deeds and the sale of valuable property at Barnes Place, Colombo 7.
The businessman, identified in earlier court reporting as Shantha Vithana Gamage, was produced before Colombo Chief Magistrate Asanga S. Bodaragama after investigators made submissions concerning his alleged involvement in financing the disputed transaction.
According to the CID, the investigation concerns a property measuring approximately 79.71 perches in one of Colombo’s most valuable residential and commercial areas.
Investigators allege that fraudulent documents were prepared to facilitate the transaction and that substantial payments and luxury vehicles subsequently changed hands.
The inquiry has also involved motor racing champion Dilantha Malagamuwa, Desmond Amarasinghe and Saman Jayaweera, whose names were previously brought before the Magistrate’s Court.
Malagamuwa has publicly denied allegations of involvement in the alleged fraud.
The latest proceedings centre on the financial arrangements behind the disputed sale, including an alleged agreement between the businessman and other individuals under investigation.
CID Examines Alleged Agreement Financing the Transaction
Investigators told the Magistrate’s Court that the businessman had allegedly entered into an agreement with individuals connected with the disputed property transaction.
According to the account presented in court, the agreement was executed before a lawyer and concerned financial assistance associated with the land.
The CID alleges that the businessman provided money connected with the preparation of disputed documentation and the pursuit of related litigation before the District Court.
Investigators are examining whether the arrangement was a legitimate commercial investment or formed part of a wider scheme to obtain and sell property using forged documents.
The involvement of a lawyer in preparing or witnessing an agreement does not, by itself, establish that the agreement was unlawful.
Equally, the existence of civil proceedings relating to a property does not automatically establish fraud.
The investigation must determine the authenticity of the relevant deeds, the nature of the financial arrangements and whether the parties knowingly participated in any criminal wrongdoing.
Financial Transfers and Rs. 56.5 Million Under Investigation
The CID also presented information concerning financial transactions associated with the businessman.
According to the supplied account of the proceedings, investigators referred to transactions involving Rs. 2.1 million, Rs. 1 million and Rs. 450,000 while examining the movement of money through relevant bank accounts.
The precise purpose and legal significance of these transactions remain matters for investigation.
Officers also sought court intervention concerning approximately Rs. 56.5 million connected with the suspect’s financial dealings.
The prosecution’s position was that the funds required further scrutiny while investigators examined the alleged transaction and its proceeds.
The source account states that the Magistrate ordered relevant bank accounts to be frozen.
The publicly available reporting reviewed independently confirms the Rs. 56.5 million figure and the ongoing financial investigation, although the complete written freezing order and the exact status of each account have not been examined.
It would therefore be premature to describe the money as proven proceeds of crime or to conclude that the businessman deliberately concealed unlawful earnings.
Establishing the origin, ownership and movement of the funds will be central to determining whether any financial offences occurred.
Seven Luxury Vehicles Form Part of CID Investigation
A further aspect of the investigation concerns seven luxury vehicles allegedly received by the businessman in connection with the disputed property transaction.
According to the CID’s reported submissions, investigators are examining how the vehicles were acquired and subsequently distributed.
The source account alleges that one Toyota Land Cruiser was provided to an institution under a rental arrangement, while another vehicle was rented to a doctor attached to the Ministry of Health.
Of the remaining five vehicles, three were allegedly transferred to Saman Jayaweera and two to Desmond Amarasinghe.
These claims have not been established as judicial findings.
Investigators will need to examine ownership documents, registration records, purchase agreements, vehicle valuations and any associated financial transfers.
The distinction between lawful acquisition, commercial leasing and alleged distribution of criminal proceeds will be important.
Earlier reporting on the wider Barnes Place investigation also referred to allegations that Malagamuwa received 14 luxury vehicles rather than cash.
That earlier allegation concerns a different reported part of the investigation and should not be confused with the seven vehicles examined in the latest proceedings.
Malagamuwa has rejected the allegations against him.
Earlier Proceedings Involved Dilantha Malagamuwa and Three Others
The investigation had already attracted public attention in September when the CID sought foreign-travel restrictions against Malagamuwa, Vithana Gamage, Desmond Amarasinghe and Saman Jayaweera.
On September 7, Colombo Additional Magistrate Lahiru Silva declined to impose the requested restrictions at that stage and directed investigators to take the necessary steps to formally identify the individuals as suspects.
The ruling did not terminate the investigation or determine whether any of those named had committed an offence.
On September 10, Colombo Chief Magistrate Asanga S. Bodaragama subsequently imposed foreign-travel restrictions on the four individuals following further submissions from the CID.
Earlier reports described the alleged sale of a 43-perch property at Barnes Place, valued at more than Rs. 2.5 billion, for approximately Rs. 1 billion.
The latest October reporting identifies the land under investigation as approximately 79.71 perches.
The available accounts do not establish whether these measurements refer to different portions of the same property, related parcels or a discrepancy in the reported extent.
A definitive assessment would require the relevant survey plans, title documentation and court records.
The disputed sale price and property valuation also remain allegations presented during the investigation rather than established findings of fraud.
Defence Maintains Businessman Made a Legitimate Investment
Attorney Nuvan Ratnayake, appearing for the businessman, rejected the suggestion that his client had knowingly participated in the preparation of fraudulent documents.
Counsel submitted that the suspect was engaged in legitimate business activities and that the disputed payments were made as a commercial investment.
The defence maintained that the businessman was unaware of any alleged forgery involving the property’s deeds.
Ratnayake also questioned the circumstances in which the investigation had progressed, referring to a complaint reportedly made in 2023.
He argued that the renewed pursuit of the complaint required closer examination and requested that his client be released on bail subject to conditions imposed by the court.
These submissions directly challenge the prosecution’s account of the businessman’s alleged role.
The issue of whether the payments represented legitimate investment capital or knowing participation in a fraudulent transaction will require examination of the agreement, financial records and other evidence.
Magistrate Orders Remand Until November 5
The CID opposed bail, submitting that investigations into the alleged financial transactions and property documentation remained incomplete.
After considering the submissions, Colombo Chief Magistrate Asanga S. Bodaragama ordered the businessman to remain in remand custody until November 5.
Investigators were also directed to report further progress to the court.
The remand order is a procedural decision and does not amount to a finding that the suspect committed fraud, money laundering or any other criminal offence.
The CID must establish whether the property documents were forged, who prepared or authorised them, how the alleged sale was arranged and whether the financial transactions and vehicle transfers were connected to unlawful conduct.
The defence remains entitled to contest the allegations, challenge the evidence and seek bail through the appropriate legal procedures.
The next hearing is expected to provide further information about the financial investigation and the steps taken to establish the legal ownership of the Barnes Place property.
