By Keefa Nuwahereza
Housing Finance Bank was dragged to court over fraudulent sale of city property at 8billion rather than 30billion at the current market value.
A city businesswoman and widow has dragged Housing Finance Bank to court over fraudulent sale of her property at Kyadondo Road Nakasero in Kamapala.
Ida May Kwesiga who owns Mayflower Apartments sitting on an acre of land at Nakasero has ran to land division of the high court in Kampala to sue Housing Finance Bank together with Balaji Group East Africa limited.
The businesswoman says she entered into an agreement with bank in 2013 to develop her property by erecting the apartments and the bank approved a loan of $2.7m to her, which was to be paid back in 10 years.
According to court documents, the loan facility was secured by property located along Luthuli avenue in Bugolobi.
“due to unconscionable terms of payment, the plaintiff (Kwesiga) defaulted and the 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 and advert for sale of the mortgaged property, “the court documents say.
The businesswoman avers that in November last year, she applied to the high court to have the mortgaged reviewed on ground that it was given on unconscionable terms, misrepresentation of facts by members and not being given chance to be represented by an independent financial advisor.
She argues that court later issued an order restraining the bank from selling the said property but during the corona virus lockdown, the property was sold to Balaji Group East Africa limited.
“the first defendant without reissuing default notice, 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” court documents say.
The businesswoman contends that the sale of her property by Housing Finance Bank to Balaji Group East Africa was unlawful, illegal and tainted as fraud.
She contends that by failing to issue fresh notices to her about the sale of the property, failure to re-advertise the property before sale and selling it at a very low price below the market price was fraudulent and wants court to rescind the decision.
“the plaintiff prays for judgement against the defendant foe a declaration that the sale of land and property at Kyadondo road Nakasero to the second defendant be set aside for being unlawfully and fraudulently done,” the court documents say.