An under-construction luxury hotel property in Colombo has been spotlighted in a money laundering probe tied to Indian real estate company Krrish Realtech Private Limited, Indian media reported.
India’s Enforcement Directorate (ED) has provisionally attached the property and its leasehold rights to 4 acres of land in Colombo 1. The asset, part of a portfolio valued at over INR 200 crore, is linked to businessman Amit Katyal, promoter of Krrish Realtech.
The investigation stems from First Information Reports (FIRs) filed by the Economic Offences Wing (EOW) of Delhi Police and Gurugram Police, accusing Katyal and associates of defrauding investors and illicitly transferring funds overseas.
Krrish Realtech is alleged to have collected INR 503 crore from buyers for a residential project in Gurugram, promising plots that remain undelivered after 13 years. The ED claims the company funneled these funds to The One Transworks Square (Pvt) Ltd., previously known as Krrish Transworks Colombo Pvt. Ltd., to develop a luxury real estate project in Colombo.
The Krrish Square project was envisioned as a landmark development featuring a high-end shopping mall and two towering skyscrapers—280 meters and 250 meters tall, set to be the tallest buildings in Sri Lanka. Despite its ambitious blueprint, which aimed to attract major international businesses, the project has faced repeated delays and legal disputes.
As of 2024, the project’s status remains grim. Construction has halted, leaving an incomplete skyscraper over 50 floors tall, with an abandoned crane deteriorating atop the structure. The Sri Lankan government took over the controversial project after the Indian-led initiative failed to meet deadlines.
The Urban Development Authority (UDA) has since received proposals from potential investors, including a Chinese contractor, to salvage the project amid creditor litigations.
Described by observers as a “rotting” eyesore and a potential disaster risk, Krrish Square has become a cautionary tale of unfulfilled ambition. Once a symbol of progress, it now serves as a stark reminder of financial mismanagement and unkept promises in the heart of Colombo.
the Financial Action Task Force (FATF), Sri Lanka is toughening its anti-money laundering system, spurred by fresh legislation and international pressure.
Although money laundering investigations had been going on for some time, with the enactment of the Anti-Corruption Act No. 09 of 2023, this task was formally given to the Commission to Investigate Allegations of Bribery or Corruption.
According to the Commission, it has formed a special unit to conduct money laundering cases with the available officers and new recruites.
These anti-money laundering efforts in the country have drawn interest from the International Monetary Fund that calls for further streamlining investigative and prosecutorial processes.
The Central Bank of Sri Lanka has since stepped up efforts to curb the vice, signing MoUs with various national and international agencies, bringing the total number to 16 local and 45 international arrangements.
A central focus of this effort has been non-governmental organizations, with the specific aim of preventing abuses of foreign funds. Sri Lanka has 1,851 registered NGOs, but only about a third are considered to be active, some of which are suspected of questionable financial dealings.
Considering that money laundering and illicit financing continue to pose grave concerns, the 2021-2022 NRA pinpointed drug trafficking, corruption, and customs offenses as leading threats, each posing a medium to high risk.
