Lender linked to dubious Nairobi land acquisition
The Central Bank of Kenya (CBK) has written to Paramount Bank to respond to queries of alleged illegal acquisition of a prime parcel of land in Parklands, Nairobi.
In a letter dated October 22, CBKs Daniel Muguima, on behalf of the director in charge of Bank Supervision, said it had received a complaint against Paramount Bank from Zaverchand Ramji Shah.
The letter to Osundwa & Company Advocates said the complaint is about fraudulent dealings over LR No. 209/6/13, original No.209/6/4/1 by Paramount Bank.
“This is to acknowledge the Central Bank of Kenya received your complaint and wrote to Paramount Bank Limited to appraise us on the matter. We shall revert comprehensively once we obtain a response from the Bank,” Muguima said.
Zaverchand, in the letters to CBK Governor Patrick Njoroge, Kenya Bankers Association, the Consumer Federation of Kenya and the Law Society of Kenya said Paramount Bank had illegally disposed him of his land.
Land in question is LR No. 209/6/13, IR No. 30866/9, and size 0.2617 of a hectare situated within Parklands, Nairobi.
The land’s current value is Sh400 million. The matter has been in court.
Later, a court ruled that Ramji should deposit Sh25 million with the bank to secure his land, which he had used as collateral.
Ramji said he deposited the cash with Paramount Bank, but the bank ignored him and purportedly engaged an auctioneer to sell the land.
He said in the letter that Garam Auctioneers denied ever auctioning the land.
However, in a strange twist, in an affidavit sworn by one of the bank’s directors, Ayaz Merali on July 24, admitted that Ramji deposited Sh25 million as loan payment.
The Bank transferred the land to KURWA limited associated with former Limuru Member of Parliament Kuria Kanyingi.
He said Kanyingi’s two wives, Jerioth Wangui and Susan Wangu denied being involved in the land saga.
A search at the Registrar of Companies on October 29, 2013 indicated that the registered directors of KURWA limited were Simon Kuria Kanyingi and Jerioth Wangui Kanyingi.
On April 22, 2008, the land was transferred to KURWA Limited and to Karim Kanani.
No cash was exchanged.
Natinal Land Commission has also said the transfer was illegal.
Advocate Mercy Kamau, who is also a director at Paramount Bank, signed the transfer documents.
Ramji now wants CBK to act against the directors of the Bank, who are Anwarali Merali, Ayaz Merali, Noorez Padamshi, Mohammed Mujtaba and Mercy Kamau for fraudulently obtaining his land.
Ramji is appealing to the bank and other agencies to help him get back his land.