The Colombo Magistrate's Court has rejected a bail appeal by Arjun Aloysius, Director of W.M. Mendis Distilleries, and two others who were sentenced to prison on Monday (14) for VAT evasion.

President's Counsel Razik Zarook, appearing for the defendants, requested the court to grant bail to the three individuals, arguing that the trial had effectively become a criminal case, Ada Derana reported.

Colombo Additional Magistrate Bandara Ilangasinghe denied the bail request, explaining that the case was initiated based on a certification from the Inland Revenue Department (IRD). The magistrate said that the imposed prison sentence served as an alternative punishment for the accused, and therefore, the case did not constitute a criminal trial.

The Colombo Magistrate's Court had sentenced Arjun Aloysius, Director of W.M. Mendis Distilleries, along with two others, to six months in prison for failing to pay Rs. 3.5 billion in Value Added Tax (VAT) owed by the company.

The IRD filed the case against the company for defaulting on Rs. 3.5 billion in tax payments due to the government from 2016 to 2019.