Politician Zaheer Jhanda, who is at the centre of an unfolding fake gold scam, has been sued by a bank for defaulting on a Sh8.9 million loan.
The asset-financing facility was only serviced for a few months before the repayments were stopped, according to official documents.
An outstanding portion of the loan has since swollen to Sh12.1 million as at November 2016. His guarantor is required to pay Sh6.5 million.
It is not clear whether the guarantor, Sameer Merllah Jhanda has any relations with Zaheer (pictured). KCB lent the politician-cum-business the money in an asset financing agreement for the purchase of a lorry.
However, Jhanda serviced the loan for only six months, prompting the bank to clamp the lorry and subsequently had it auctioned, according to a notice published by the lender’s advocates.
In the notice published last week, Jhanda was required to respond to KCB’s demands relating to the outstanding loan, failure to which the bank would move to court.
The lorry, a Mitsubishi Fuso, was auctioned on April 26, 2016 for Sh5.1 million, which was below its current market value of Sh6.87 million.
KCB, through lawyer Walker Kontos, was in court last December to seek orders to enable it recover Sh18.6 million owed collectively by the Jhanda and his guarantor.
The duo, according to the court papers, has admitted the debt but neither made commitment nor responded to the petition.
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