Mendis Company has been given back its liquor license on strict conditions to recover Rs. 14 billion in unpaid taxes and loans taken from state banks during the ‘yahapalana’ governance period.
Mendis Co. said they bankrupt to the point where it could not make any payments due to the suspension of production licenses.
As a result, Mendis’ neglecting to pay loans as well as taxes caused severe hardship to state-owned banks and taxpayers.
‘Yahapalana’ government had allowed Mendis Co.to neglect on taxes and loans and the present government had suspended the company’s production license with the intention of recovering the money and instructed Mendis Co. to pay the money.
The Inland Revenue Department, the Excise Department and state-owned banks have recently informed the Ministry of Finance that Mendis Co. does not have the assets to atleast repay 10% of about Rs. 6 billion in loans to banks including People’s Bank and Bank of Ceylon or nearly Rs. 8 billion in taxes.
Accordingly, the Excise Department has taken steps to revoke the liquor license which was suspended due to the fact that there is no other method to recover the money due to the government.
