Jamii Bora Bank has denied involvement in the acquisition and sale of a 2.8 hectare parcel of land in Msambweni, Kwale County, valued at Sh50 million in 2013.
Paul Urbaan Aime Verleysen, a German businessman who claims to be the owner of the property, accused the bank of advancing a Sh50 million loan to Samchi Telecommunications Ltd despite knowing that the title given as security was unlawfully acquired by the communication firm.
Mr Verleysen, who is the director of Socaf and Company Ltd, told Justice Charles Yano that he acquired the land in July 2, 1979, from two Italians for Sh25 million.
“The third defendant (Jamii Bora Bank) knew or ought to have known that the title being offered as security had been unlawfully acquired by Samchi Telecommunication," he said.
Socaf said the bank, the telecommunication firm, the land registry in Kwale, John Miana Njoroge and Abdalla Kombo Abdalla did not have any right to the land in question.
He said the county's and the Kwale land registry's actions had deprived him of his lawful title deed and unless the same was reinstated and the records at the registry rectified, he stood to suffer irreparable harm if the property was further disposed of to third parties.
He wants Njoroge, Samchi Telecommunication and Abdalla to declare they are not the real owners of the land and surrender its title deeds to the land registry in Kwale for cancellation and rectification.
However, in its defence, the bank said it did not notice any defects in the title deed as the official search dated February 29, 2014, clearly indicated that the proprietor of the title was Samchi Telecommunication Ltd.
The bank’s lawyer, Cynthia Ombati, said after due diligence and requisite formalities were carried out, the bank charged the title for Sh50 million.
Samchi Telecommunication, through Anthony Gikaria, said it was the legitimately registered proprietor of the land, having purchased it for Sh49 million from Abdalla on March 28, 2013.