The apartments were fraudulently sold by Housing Finance Bank at $ 2.4m (about sh8.8Bn) against the estimated farced sale value of $7.3m (about sh27.Bn) to Balaji Group Ltd.
HIGH COURT KAMPALA
The High Court in Kampala has stopped Housing Finance Bank from transferring ownership of the estate of the late Samwiri Mishambi Kwesiga, valued at sh30b, managed by Ida May Kwesiga, to Balaji Group Ltd.
We recently revealed how Housing Finance Bank had been dragged to court over fraudulent sale of city property at Shs8 billion yet the same is worth Shs30 billion at per the current market value.
The apartments were fraudulently sold by Housing Finance Bank at $ 2.4m (about sh8.8Bn) against the estimated farced sale value of $7.3m (about sh27.Bn) to Balaji Group Ltd.
Kwesiga, the administrator, got a temporary reprieve after the order stopping the sale was extended by High Court Deputy Registrar Susan Kanyange Tuesday (September, 08 2020) until the main case is heard on September 14.
The first order was issued by Assistant Registrar Justine Atukwasa on August 31.
The order was issued in the presence of Kwesiga’s lawyers, Francis Harimwomugasho and Aaron Baguma.
Fred Makada appeared on behalf of Balaji Group, while John Musiime represented the bank.
Kwesiga wants the court to cancel the sale of her multibillion apartments comprised in Freehold Register volume 212 Foilo, 22, Plot 35 Kyadondo Road in Kampala.
The commissioner for land registration has also ordered the bank and Balaji to stop the transfer of the property.
Kwesiga wants the court to cancel the sale on grounds that the amounts being demanded by Housing Finance Bank as owing were not actually due, but arose from the charging of the non-contractual interest and alleged illegal charges.
Kwesiga was advanced a loan of $2.4m (about sh8.8b) by the bank to furnish the apartments in 2012.
The bank says she defaulted on the loan and it decided to sell the apartments to Balaji.
Through her lawyers, Kwesiga argues that the bank demanded exaggerated amounts not due to it with the sole aim of denying her an opportunity to redeem her property.
According to the family, despite the financial challenges during the pandemic, the bank went ahead to sell the property at the time when land transactions were halted by the lands ministry.
“The financial challenges of the plaintiff were aggravated by the outbreak of the coronavirus pandemic that affected the business and slowed down the cash flow of the plaintiff for which the first defendant (bank) should have recognised and restructured the mortgage,” Kwesiga said.
Also, Kwesiga is contesting the circumstances under which the Balaji Group acquired land registered under freehold.
Lawyer Harimwomugasho said under section 40 of the Land Act and Article 237 of the Constitution, a foreigner cannot acquire freehold land.
He said all the directors of Balaji Group are Indians. It was not clear if they are not Ugandan nationals.
Housing Finance Bank has denied selling Kwesiga’s estate at ‘throw-away price’.
The bank said it sold condominium not the entire estate as it has been reported.
According to the bank’s lawyer John Musiime, Kwesiga is still in possession of her estate.
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