Salu Sala last week said it is not liable to pay the Rs 2.5 billion, demanded by an Indian marketing agency, for non-payment of dues for importing school uniform material on behalf of Salu Sala.
The Sunday Observer learns that Varcheswi Marketing Agency, the company contracted to supply the materials, had failed to provide the goods within the stipulated time.
“Due to this delay we were unable to deliver the goods before the voucher validity period ended. Therefore, there has been clear violation of the agreement,” a Ministry source said.
Salu Sala will inform the law enforcement authorities regarding the issue and will seek their intervention by tomorrow.
The main complaint would be against a third party which allegedly defrauded Salu Sala by supplying low quality material procured elsewhere and sold as Salu Sala material.
“There is a case of misusing public property and through such actions the goodwill of Salu Sala has been heavily tarnished,” the source said.
“We have reached out to the Police as well as the CID and have decided to lodge a complaint with the Narahenpita police tomorrow”.
Salu Sala, which was entrusted to distribute school materials, was unable to do so after it faced dire financial difficulties resulting in cutting down its workforce.
This resulted in the contract signed between the two parties to include a third party to distribute the material island-wide. The Sunday Observer learns that the Commerce Division of the Indian High Commission has written to Salu Sala seeking clarification on the matter to which Salu Sala has replied.
Meanwhile, Varcheswi Marketing Agencies spokesperson, speaking to Sunday Observer, denied that there had been any delay on their part. There were issues of timing, he said, “However, these were mainly due to issues of communication with Salu Sala and not due to any delay on our part.”