He had obtained this compensation payment for a land in the Kadawatha area. It is said that he had also obtained this compensation within the span of a few days.
Currently, Mahanama is in remand custody over an incident where he was nabbed by the Bribery Commission officers while he was accepting an initial bribe of Rs. 20 million together with the Chairman of the Timber Corporation. He had demanded a bribe of Rs. 100 million from an Indian investor to provide all facilities for the Kanthale Sugar Factory.