• Major creditor moves to wind up Krrish Transworks Colombo, signalling potential collapse 
• Faces uncertain future amid accusations of corruption and ongoing legal battles
• Court action prompts concerns of deceitful asset syphoning by company directors
• UDA unaware of proceedings to wind up operations 

The Urban Development Authority (UDA) remains unaware that the Krrish Square project stands on the brink of collapse, even as creditors of Krrish Transworks Colombo Ltd. go before the court seeking court intervention to wind up the company.

The Sunday Morning Business learns from reliable sources that a major creditor of Krrish Transworks Colombo – the local office of the developers of the Krrish Square project – has instituted action before the Commercial High Court seeking the intervention of the court to compulsorily wind up the company.

This development could be the death knell for the infamous Krrish Square project, which has been waylaid with accusations of corruption since its inception in 2012.

According to sources, the action came up before the court on 28 February and has now been fixed for order on the winding up and the appointment of a liquidator. 

Furthermore, several other creditors have also sought to intervene in the matter amidst objections of the counsel appearing on behalf of Krrish Transworks Colombo Ltd.

The creditors seeking to intervene had stressed on the importance of the court’s intervention, claiming that the directors of the company were currently engaged in a deceitful campaign to illegally syphon off its assets.

However, when The Sunday Morning Business reached out to UDA Deputy Director General – Real Estate and Land Management E.A.C. Piyashantha, he stated that although the construction work of the Krrish Square project continued to remain at a standstill, they were hopeful that the developer would be able to conclude the project.

He however admitted that the UDA had not been informed of the recent development in relation to the court action. “We have not been informed of this. They may do so after an order is made by the court,” he stated.

The developer Krrish Transworks Colombo Ltd. entered into a lease agreement with the UDA in 2012 for 99 years at Rs. 5 billion for the Krrish Square project.

The proposed development was expected to be a large-scale mixed development that would have consisted of high-end residential towers, commercial and retail spaces, and a seven-star hotel.

The development would have also contained the Transworks building, a heritage site, which was to retain its architectural character and be converted into a luxury boutique hotel.