The Colombo Commercial High Court on Friday dismissed a petition filed by M. Thiyagaraja seeking permission to take action against National Development Bank PLC (NDB), its directors and external auditors over an alleged Rs. 13.2 billion fraud.

High Court Judge Viraj Ranatunge issued the order on October 9, 2026, stating that the requirements for proceeding with the case had not been met.

The petitioner had raised concerns about the bank’s corporate governance, internal controls and the responsibilities of its directors and auditors in connection with the alleged fraud.

However, the court noted that NDB had expressed its intention to take appropriate action and had already begun investigating the incident. The bank had commissioned a forensic audit and lodged a complaint with the Criminal Investigation Department (CID).

The court also observed that there were insufficient grounds to justify allowing the petitioner to pursue the case independently of the bank’s directors.

The court dismissed the petition and ordered the petitioner to pay the applicable legal costs.