Fake Gold Scam: The man in the middle of the fake gold scandal is now embroiled in a loan dispute with Kenya Commercial Bank (KCB).
The bank has accused Zaheer Jhanda of defaulting on a Sh. 12 million car loan he took five years ago.
KCB also claims that Jhanda took the money to buy a new Mitsubishi Fuso Tipper Truck from Simba Corporation Limited for Sh8,917,650. This car loan was issued on November 18, 2014.
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“The credit was secured by the logbook of the motor vehicle, registration number KCB 745F, which was to be registered in the joint name of the bank and Mr Jhanda together with his personal guarantor for Sh. 6.5 million. At the time of taking the loan Mr Sameer Merllah Jhanda was his guarantor and has also been sued by KCB over the loan dispute. It is not clear whether Sameer is related to Mr Jhanda,” says a report that appeared in the Daily Nation on Tuesday.
KCB in a suit papers that Jhanda only serviced the loan for six months. Since then, the loan has only been accumulating arrears.
The Daily Nation further reports that KCB repossessed and sold the vehicle at a public auction that was conducted by Leakey Auctioneers on April 26, 2016 for Sh. 5.18 million , even though the vehicle’s market value at the time was Sh. 6.87 million.
“The bank alleges that despite the motor vehicle sale, there was still an outstanding loan balance of Sh. 12,103,943.50 as at November 2016 which continues to accrue interest,” says the paper. “In spite of demands having been made and notice of intention to sue have been given, Mr Jhanda and his personal guarantor, despite admitting being in debt, have refused, failed or neglected to pay the aforesaid sum or any part thereof,” said the bank’ lawyers from Walker Kontos law firm.
In the suit, KCB wants Mr Jhanda, who is involved in the fake gold scam, compelled to pay them the said monies with a 13 percent interest. It also wants his guarantor ordered to pay Sh. 6.5 million with the same interest rate.