Courtesy Adaderana

As the method adopted by the leasing companies to seize vehicles of those who had failed to pay their loan installments is unlawful, no room should be left to continue this practice, President Gotabaya Rajapaksa has ordered the Police, says the President’s Media Division (PMD).

Leasing companies do not inform the Police prior to such seizing. They lodge complaints only after taking over the vehicle,” the PMD’s statement read.

This kind of forceful action sometimes leads to grave violence. As such, the President instructed the Acting IGP Chandana Wickremaratne not to entertain complaints received from the leasing companies after seizing, the PMD said further.

Under the package of concessions offered to the public affected with the spread of COVID-19, recovery of leasing installments from three-wheeler owners was suspended for 6 months. It was clearly stated in Section 2 of the Circular 16/2020 issued on March 23 under the signature of the Secretary to the President.

In this context, seizing of vehicles for not paying the installment is a breach of the Government order. President informed the Police not to allow vehicles to be seized on the ground of non-payment of instalments, the statement continued.

The move comes after the Chairman of Self-Employed Professionals’ Three-Wheeler Association, Sunil Jayawardena was assaulted to death by a group of employees of a leasing company on May 10. Jayawardena was killed during an argument concerning a leased three-wheeler which belonged to one of his associates, who had missed payment of lease installments.