Madhu Chaudry & his family who lives in a small flat in Chennai came to Sri Lanka and set up a cable TV business called Star TV (which was a very popular cottage industry in shanty areas in India ) 10 years ago.
His local partner had some political connection to the one of the siblings of the former president. With that connection his fortune started to change. They took up the luxury apartments (JAIC Hilton Residencies) in Colombo to show off that they are from rich business family. He started to bring Indian businessmen to the country and made commissions by showing the politicians in this country. When they found out his fraudulent motives they started to avoid him. Those people were threatened using his so called political connections at that time and the image of the country was ruined and we lost good investors.Then they brought some Singaporean investors to set up a Casino in the Katana area. Without having any license they brought the investors for this project and showed the politicians and started swindling money from them by telling them that these are political contribution to secure the Casino license in the future. By bringing the Singapore investors they managed to get a land in Katana for lease from the government.
Apart from the government leased land to them , they started purchasing lands around Katana for Rs 200,000 / perch (Actual price was Rs15,000/ perch at that time ) and told the investors to pay 25% advance for additional 80 Acres to reserve the land and swindle the investors. That project never took off as expected and they put the blame on the change of government .However with that operation they bought 3 more flats in Chennai & Delhi .
If we start to reveal all their deals we won’t be able to complete this article.
Madhu Chaudry’s family had a company called UTL Global Projects Pte Ltd registered (as a paper company ) in Singapore where his wife, daughter & son ( Prashanth Koorapati) Were the share holders of that company with an annual turnover of Sing $ 3000/ annum. In 2014 they came up with a Consortium partner called Patel Engineering Ltd ,India to develop the Bambalapitya Flats.
Due to the financial credentials & track record of the Patel Engineering Ltd,,BOI selected the Consortium as the Developer/ Investor and recommend to NHDA for this Project. NHDA and the Consortium signed a MOU for the development. However due to the demands of Madhu Chaudry, Patel Engineering Ltd withdrawn from the Consortium.
Under these circumstances UTL Global Projects brought in Engineering Projects India Ltd - EPIL (Indian Govt owned institution) as the new investor replacing Patel Engineering Ltd on the condition that they will bring FDI of USD300 Mn as investment. BOI re-evaluated and recommended the new Consortium to the Cabinet due to EPIL financial commitment and their track record. Once it was approved by the Cabinet, BOI requested the consortium partners to float a local company . The local company called City Square Projects Pvt Ltd was floated but the other consortium partner EPIL name was missing in the local company. However BOI signed the agreement with UTL Global Projects Pte Ltd without the EPIL commitment. The Cabinet approval was given to EPIL & UTL Global Projects Consortium only. Once the approval was obtained they went shopping with those documents.
They went and signed with the Singapore investor to sell 50% Share of the Company for USD40 Mn (Government valuation of the Bambalapitya land was around USD80 Mn ). Later it was found out that the EPIL was used by them as a dummy Developer/ Investor to fool the Sri Lankan government. UTL Global Projects company has submitted fake profile to the government which found to be fraudulent document claiming their track record in projects. They don’t have any Consortium Agreement with EPIL for investment. Meantime the Bambalapitya Flat Owners started to protest against the fraudulent Indian Developer and started questioning their financial credibility. Under severe pressure the CCEM requested the Developer to bring USD10Mn to Sri Lanka within 4-6 weeks of signing the PPP Agreement with NHDA and allowed to sign the PPP Agreement on 18th May 2017.
UTL Global Projects Pte Ltd couldn’t bring the USD 10 Mn as stipulated in the PPP Agreement and automatically the Agreement was expired on 31st July 2017 . However, due to a corrupt official at the Ministry of Housing & Construction , this was never reported to theCabinet. Meantime, Madhu Chaudry & Prashanth Koorapati tried to fooled the government by ;
(a) UTL Global Projects Pte Ltd gave a letter to NHDA confirming that they have transferred USD 10 Mn to the City Square Projects Pvt Ltd Account at People’s Bank Head Office.
When NHDA checked the City Square Projects Pvt Ltd Account with the People’s Bank it’s found to be false.
The truth is Prashanth Koorapati created an online message ( print out ) to show they have transferred USD10 Mn to the City Square Projects Account at People’s Bank But that particular senders account in Singapore was frozen long time ago by the Singapore Monitory Authority . To fool the NHDA officials they created this and sent to NHDA. NHDA officials found out the fraud and informed the Ministry but this was suppressed by the corrupt officer.
(b) UTL Global Projects Ltd submitted another letter on 18th Dec 2017 (after the expiry date) from the Indian Bank in Colombo to the NHDA stating that USD11 Mn has been sanctioned in the name of City Square Projects Pvt Ltd .
- This was rejected by the government since there was no fund transfer to the SPV.
- The truth is they have promised the Indian Bank in Colombo that they can pledge the Bambalapitiya land to the Bank and give the business to them and used some connections in India and got the approval for credit facilities once the land is pledged to the Bank. There was no physical transfer of any cash .
(c) UTL Global Projects Submitted another letter from Western Alliance International Ltd, Hong Kong ( Who is not a Developer ) on 16 th February 2018, stating that they have brought USD10 Mn to their own account in State Bank of India, Colombo to invest in the shares of City Square Projects Pvt Ltd.
- The Government rejected this because the Western Alliance International Ltd, HK was Not the Developer as per the Cabinet Decision.
The Developer identified by the BOI and recommended by the Cabinet are UTL Global Projects Pte Ltd and Engineering Projects India Ltd. Or the SPV called City Square Projects Pvt Ltd or the holding company Centennial Holdings Pte Ltd ( approved by BOI) .The USD10 Mn must be brought into any of these company accounts in Sri Lanka before 31st July 2017.
Apart from that its a shock to find out that the USD10 Mn which has been parked in Sri Lanka by Western Alliance International Ltd HK ,owned by Jain brothers ( Rajesh Jain , Doulat Jain & Mahesh Jain ) who are the famous Money Launderers ( identified by the Indian government as the Hawala Operators who were involved in the 2G Scam ) operating from Dubai,Hong Kong and India . Also the above company has been identified in the PANAMA PAPERS. ( Any body can check the web site to confirm this)
However If the above information comes to the notice of the government of Singapore, India & Sri Lanka had to initiate legal action against Madhu Chaudry & Prashanth Koorapati for their association with them
They also used their Singapore Holding Company - Centennial Holdings Pte Ltd ( which controls 100% share of City Square Projects Pvt Ltd) to open off - shore accounts at People’s Bank Head Office in Sri Lanka to help Russian Mafia’s money laundering activities . Recently they brought Euro 2 Mn under the guise of investing in the Bambalapitya projects and later transferred to another country with out the knowledge of the Singapore government .Hope the Central Bank of Sri Lanka - Financial Intelligent Unit will investigate these matters urgently and report to the Indian & Singapore governments before they escape from Sri Lanka.
They also has been using reputable Sri Lankan’s in their board as directors to cover up their misdeeds & fraudulent activities and to have access to important Minister’s advisors and private assistants in this government.
We also understand they have shown the credentials of Engineering Projects India Ltd and sanctioned USD25 Mn as project loan for City Square Projects Pvt Ltd from People’s Bank , when the land is transferred to the company. With the People’s Bank letter they went to town and swindle another USD 5Mn to 10 Mn from overseas investors and fund managers. - We hope the Hon. Prime Minister & Hon. Minister of Housing & Construction will take necessary action against these culprits, Ministry Officials and request the Cabinet of Ministers to cancel this award and call for an open tender.
If this is not cancelled, they will get the Bambalapitya Land transferred to the company name and pledge to some financial institution and take the money and run away . The Bambalapitya residents will be in the road with their houses are demolished. Government will be helpless.
We also wants to warn the Local Banks & Indian Banks in Sri Lanka NOT to associate with these type of Indian fraudsters without checking with the Indian High Commission in Colombo in future.