A Nairobi businessman Mohamed Aden Barre has sued two banks and a business firm for allegedly releasing his title surrounding Sh 100 million property fradulenty.
Barre in his court papers filed at the Environment and Land Court in Nairobi claim his title, which was allegedly used to secure a loan, was released without his authority, consent or knowledge.
In his application, Barre alleged that AIMA Enterprises Limited, Gulf African Bank Limited and African Banking Corporation (ABC) were involved in a fraudulent scheme of taking away his property.
Through his lawyer Omondi Omollo, Mr Barre stated that AIMA and ABC Bank took possession of his original title document of a suit property from Gulf African Bank without his knowledge.
The businessman also claimed that signature on a charge document dated November 16, 2012 was forged.
“AIMA and Gulf African Bank are in breach of the contract of the guarantee and by reason of the breach of the agreement by Gulf African Bank, Barre is unable to redeem the suit property as his equity of redemption has been fettered and is at risk of sustaining loss and damage,” he stated.
According to Barre, AIMA had gone to Gulf Bank to secure a loan of Sh 48 million and sought his help to guarantee the loan through his property situated in Nairobi’s South C.
He alleged that as a guarantor he deposited the original title documents of the property with Gulf African Bank as security for the loan.
The businessman added that AIMA approached ABC bank to buy off the loan from Gulf African Bank under a bank-to-bank undertaking.
“I wrote to Gulf African Bank through his Kibungei Company Advocates on October 28, last year with instructions that the bank will be held responsible for any loss and expense as a consequence of the transfer of the title deed to ABC bank,” he claimed.
Barre allegedly later learnt that ABC had earmarked his land for auction to recover the loan, which was taken by AIMA over alleged failure to serve the loan.
“We are instructed that about November 22, 2012, without knowledge, authority or consent of our client received the title documents from Gulf African bank and caused to be charged the aforementioned properties to the tune of Sh 100 million,” reads part of the letter to ABC bank.
However, ABC bank replied in a letter dated November 17, 2015 stating that it took over the loan facilities in the name of AIMA Enterprises Limited (borrower) from Gulf African Bank that were secured by securities in the name of chargor.
ABC bank, in its response, stated that the securities were released to the bank from Gulf upon acceptance of a bank-to-bank undertaking, adding that it does not have any knowledge of any fraud with regards to the discharge of charge at Gulf or release of documents to ABC.
“All securities registered in our favour were done legally and under the instructions and full knowledge of charger and the borrower. We therefore deny any allegations of alleged fraud as well as deny all liability associated with the alleged fraud,” reads part of the ABC letter to Barre.
The man wants the court to block any sale of his land.