Krrish Project: UDA awaits project due date to litigate
2 months ago | By Maheesha Mudugamuwa
No legal action can be taken against the $ 650 million Krrish Square Project until the expiration of its project duration next year, the Urban Development Authority (UDA) said yesterday (18).
According to UDA Additional Director General Mahinda Withanaarachchi, the UDA will only be able to take any legal action against the mega project – which was initiated in 2016 and is yet to take off – once the scheduled construction period ends next year.
According to Withanaarachchi, the UDA has provided land for the project through a Public-Private Partnership (PPP) where the UDA provides the land and project financing comes from a private party.
The Addl. DG stated that the company had already settled the payments for the land and therefore the authority had to wait until the scheduled construction period was over.
India-based Krrish Group sealed the controversial lease agreement with the UDA in August 2012, with the money to be paid in full by January 2013.
However, the project did not commence as it was planned and again in 2016, Krrish Transworks Colombo Ltd., the local company of the Krrish Group, signed a supplementary agreement with the Board of Investment (BOI).
Accordingly, the UDA earlier cleared a land of 3.7 acres to proceed with the Krrish Square Project construction work under its first phase.
Krrish had earlier planned to build four towers – the tallest tower with 85 floors, the second with 80, and the other two with 55 floors each – with five million square feet of residential and commercial space and a hotel.
The developer has entered into a lease agreement with the UDA for 99 years at Rs. 5 billion for the mixed development project.
Earlier it was reported that the project had been downsized from its earlier status to two towers due to the economic circumstances prevailing at the time.
The proposed development is a large-scale mixed development that will consist of high-end residential towers and commercial and retail spaces and a seven-star hotel.
The development also contains the Transworks Building, a heritage site, which is to retain its architectural character and be converted into a luxury boutique hotel.
Nevertheless, Urban Development and Housing Minister Prasanna Ranatunga has last week instructed his Ministry Secretary to consult the relevant parties and take a decision regarding ongoing unfinished mega mixed development projects and abandoned unfinished buildings in the Colombo municipal area, including the Hyatt and Krrish projects.