Equity Bank insiders could have aided Sh1.7 billion toxic loan

Equity Bank insiders could have aided Sh1.7 billion toxic loan

- in Investigations, News

Top managers of Equity Bank could be facing summary dismissals and possible fraud charges amid fears that they orchestrated and approved toxic loans amounting Sh1.7billion shillings to a controversial businessman KiritKumar Bhagwandas Karnabar.

The irregular loan facility is said to be part of the bigger fraudulent schemes amounting to billions of shillings involving local and foreign businessmen and at least five other Kenya based banks.

The new revelation comes weeks after Harish brother KiritKumar Bhagwandas Karnabar was charged before Kiambu Chief Magistrate Court Justus Mutuku for obtaining credit worth Sh210 million by false pretence contrary to Section 316 (a) of the Penal Code.

Insiders at Equity Center are said to be uncomfortable and have raised queries of how the huge loan was processed without adequate of due diligence ownership, status and authenticity of the security provided.

Kirit is said to have been introduced to the bank through investment department.

Kirit is the brother to the name of Baps Temple leader Harish Karnabar.

Faithfuls and a section of Baps Temple along Forest Road now want Harish to step down over credibility issues which potentially threatens to tarnish the reputation and integrity of the Temple.

The court heard that on diverse dates between July 30, 2015 and November 13, 2015, Kirit obtained the said amount from Hitesh Pravin Dave by falsely pretending that he was in a position to undertake renovation of apartments in Nyali, Mombasa a fact he knew he was not in a position to.

The Magistrate ruled the accused be released on a sh10million bond, cash bail of sh5million and surety of same amount and his passports deposited in court.

Drama played out at Kiambu Law Courts yesterday as Kirit was accompanied by a nurse from MP Shah Hospital where he had been hospitalized since last Friday under police guard.

“Kirit Bhagwandas Karnabar on diverse dates between 30th day of July, 2015and 13th November, 2015 in Nairobi within Nairobi County in incurring a debt to Hitesh Pravin Dave obtained credit to the amount of Ksh210, 000,000 from the said Hitesh Pravin Dave by falsely pretending that you were in a position to undertake renovations in Nyali a fact you knew to be false.” The charge sheet read in part.

Kirit plea to have him detained at MP Shah Hospital was objected to and he was temporarily held at law courts cells.

He was admitted after he collapsed while being taken to Muthaiga Police Station after recording statements at the Directorate of Criminal Investigations headquarters in Nairobi.

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