By The Pulseline News Desk
A series of controversial land transactions involving state-owned properties and private companies have come under scrutiny before the parliamentary Committee on Public Enterprises (COPE), raising fresh concerns over accountability, misuse of public assets and prolonged legal disputes involving the National Housing Development Authority (NHDA).
The revelations have emerged during a recent COPE meeting convened to examine the Auditor General’s reports for 2022 and 2023 and review the current performance of the NHDA. The session was chaired by MP Nishantha Samaraweera.
Among the most significant issues discussed was a prime plot of land located on Darley Road in Colombo, measuring approximately 1 acre and 26.5 perches, which had originally been allocated to a foreign company for a mixed development project that included residential apartments and a shopping complex.
However, officials had informed the committee that the company had allegedly failed to carry out the agreed development and had instead transferred the land to another company.
The matter had become further complicated when the second company reportedly sold a section of the property — identified as Lot No. 5 — to a third company in 2017.
Officials have told COPE that the NHDA had later cancelled the deed relating to the transaction, prompting the third company to file three court cases challenging the decision.
The dispute has since expanded beyond civil litigation. Officials have also revealed that the Criminal Investigation Department (CID) is currently conducting a probe into the matter.
Despite the series of transfers and legal disputes, authorities have maintained that ownership of the land still legally remains with the NHDA.
Multiple land disputes surface
COPE had also examined another disputed land transaction involving a property in the Parangiya Kumbura area of Nawala.
According to officials, the NHDA had transferred the land to a private company through a conditional freehold deed. The company had subsequently transferred part of the property to another company while mortgaging the remaining portion to a private bank to secure financing.
After the Authority had later cancelled the deeds connected to the property, the company involved had filed legal action against the Authority.
COPE members were further informed that a separate individual has also filed a court case claiming personal ownership of the same land, adding another layer to the dispute.
Officials have stated that all related cases remain pending before the courts.
The committee had additionally discussed issues concerning a parcel of land linked to a preschool operating within the Maligawatte housing complex, though detailed information regarding that matter was not disclosed during the proceedings.
Questions over public asset management
The discussions before COPE have once again highlighted recurring concerns regarding the management and transfer of public lands by state institutions.
Successive governments have faced criticism over the allocation of valuable state-owned properties to private entities, often under development agreements that later become entangled in allegations of irregularities, underutilisation or legal disputes.
The cases raised before the parliamentary committee reflect broader questions about oversight mechanisms, contractual enforcement and the protection of public assets, particularly in rapidly developing urban areas where land values continue to rise sharply.
With several of the disputes now before the courts and at least one under criminal investigation, the controversies surrounding these land transactions are likely to attract continued political and legal attention in the months ahead.
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