Two suspects have been remanded until August 5 over allegations of evading millions of rupees in taxes through the import of luxury vehicles and construction raw materials, the Daily Mirror reported.
Colombo Additional Magistrate Oshadha Migara Maharachchi made the order after hearing submissions from Sri Lanka Customs officials appearing for the investigation. The suspects were named as Achini Tharaka Mihirani Dias, described as an employee of the company under investigation, and Athila Ravinaka Weeraratne. One of the two is the son of the owner of a well-known gate manufacturing and motor vehicle importing firm, which the newspaper did not name.
The alleged undervaluation
Customs officials told court they were investigating allegations that goods had been brought into the country under declared values lower than their true worth, depriving the government of revenue.
In one instance cited to the magistrate, a Mercedes-Benz was imported at an undervalued price, resulting in a loss of Rs. 4.1 million in government taxes.
Officials said an examination of the company’s invoices had turned up records relating to the import of goods valued at USD 49,815.75 under one invoice, letters of credit amounting to USD 19,926.30, and a further consignment valued at USD 29,889.45.
Customs also asked the court to impose overseas travel bans on three directors of the company.
Defence challenges the evidence
Appearing for the suspects, President’s Counsel Nalinda Indatissa argued that investigators had failed to place a proper summary of evidence before the court. He submitted that under Section 127A of the Customs Ordinance, further remand is a matter for the magistrate’s discretion rather than an automatic step, and that continued detention was not necessary as investigators had claimed.
Citing earlier Supreme Court decisions, Indatissa said proper evidence must be presented to court, and that no such summary had been filed in connection with the ongoing investigation.
Investigators opposed bail, telling court that further arrests were expected and that releasing the suspects raised the risk of evidence being destroyed or interfered with.
The magistrate ordered the suspects remanded until August 5 and directed investigators to submit a progress report on that date.
