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Supreme Court Upholds 20-Year Sentence in Rs. 3.9 Billion VAT Fraud Case
Aruna Shantha
13-Jul-2025 07:13:24
The Supreme Court today upheld the Court of Appeal's decision affirming the Colombo High Court’s verdict sentencing businessman Mohamed Kuthubdeen to 20 years of rigorous imprisonment and imposing a heavy fine over South Asia’s largest VAT fraud, amounting to Rs. 3.9 billion.
The judgment, delivered by Justice Janak de Silva with the concurrence of Justices Arjuna Obeysekera and Sobhitha Rajakaruna, ruled that Kuthubdeen had no legal grounds for a fresh appeal. Deputy Solicitor General Shanil Kularatne, representing the Attorney General, argued that the petition was an abuse of the judicial process, as prior rulings had already rejected similar appeals.
Kuthubdeen and two others were convicted of defrauding the Department of Inland Revenue between 2002 and 2004. Despite fleeing the country after conviction, they later filed multiple appeals—all of which were dismissed.
The Supreme Court stressed that repeated appeals undermine judicial integrity and confirmed that the original sentence remains in effect.
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