A city businesswoman has dragged Housing Finance Bank to court over fraudulent sale of her property at Kyadondo Road Nakasero in Kampala.
Ida may Kwesiga, a city businesswoman has dragged Housing Finance Bank together with Balaji Group East Africa Limited to court for selling her property fraudulently. The property sold is located at Kyadondo Road.
She says the agreement she entered with bank was to develop her property (Mayflower apartments sitting on an acre of land at Nakasero) and a loan of $2.7 m was approved in 2013. The loan was to be paid in 10 years’ time.
The bank was to develop the property by erecting the apartments that are sitting on the one acre land at Nakasero.
However, the court documents indicate that due to inconsistency in payment of the loan by Kwesiga, Housing finance issued her a sale notice last year.
“Due to unconscionable terms of payment, the plaintiff (Kwesiga) defaulted and the first defendant (Housing Finance Bank) issued her with a notice of default on July, 3, 2019.The first defendant subsequently issued the notice of sale against the said mortgaged property on September 9, 2019 and on October, 15, 2019, the first defendant published an advert for the sale of the mortgaged property,” the court documents stated
She says much as she applied to the high court to have the mortgage reviewed on ground that she was given unconscionable terms and not being given chance to be represented by an independent financial advisor the property was sold during lockdown even when court had issued a sale restraining order to the bank.
Kwesiga has sued the bank on ground of selling her property at a low value, not advertising the property and failure to issue new notices to her.
“The first defendant without re-issuing default notices, re-advertising or re-evaluating to ascertain the current market value proceeded and sold the suit property to the second defendant. The plaintiff has just come to learn that the property was sold to Balaji Group East Africa Limited despite having a court order and being aware of the current Covid-19 situation that has affected the entire economy,” states the court documents.
She believes that fact that court sold the property during the lockdown period even before assessing the market was a fraudulent move made by the bank.
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