Details have now emerged how Prime Bank directors’ masterminded a scheme to fraudulently process a Sh340million loan facility in the guise of purchasing a property owned by a company associated to them, The Informer can authoritatively reveal.
Our investigations further revealed the plotters of the scam registered the company, Crason Holdings Limited using particulars of their subordinate staff without their knowledge and approval.
On February 18, 2014 Crason Holdings Limited applied for a loan using with the land as a collateral.
On March 3, the same year, the facility was processed amounting to Sh196.8million and USD1, 508,045 (Sh150,804, 500) totaling to Sh347million and charged a certificate of Title in the name of Dhanji Hansraj Chandaria and Indira Dhanji Chandaria, being proprietors of land LR number 11390/4, IR 20096/15.
At the time, Dhanji Hansraj Chandaria was serving as a director at Prime Bank.
Our investigations unraveled at the time, their subordinate staff workers Leonard Irungu whose occupation was indicated as a driver and Philip Loseno Kingai , then working for the Chandaria’ s at Redhill Investment Limited showed were given documents to sign, effectively resigning from the company without reading.
The document indicated that they had resigned as directors and handed over to Rajesh Maneklal Rughani and Pushkarrai Prabhulal Jani.
After Luseno learnt that they had been fraudulently registered as directors of the company which later took loan from the Prime Bank, he went to their branch at Kenindia House but he was dismissed by the bank manager.
Upon suspecting possible fraudulent land transaction, the National Land Commission (NLC) wrote to the bank seeking information on the transaction.
In response, Prime Bank, through a letter dated June 8, 2015 the bank said:
“As per your request we attach hereto a copy of the Title in respect to LR number 11390/4 (I.R 69645) registered in the name of Crason Holdings Limited. We wish to advise that the bank would not be in apposition to furnish you with the other documents sought as these are confidential in nature and the banking Act (Cap 488) Section 31(2) prohibits banks from disclosing confidential information except as provided in the said Act.” The letter reads in part.
On January 13, 2014 Dhanji Hansraj Chandaria and his wife, Indira Dhanji Chandaria allegedly bought the land LR number 11390/4, measuring 0.9125 hectare from Crason Holdings Ltd.
The Certificate of title was registered at the Land Titles registry in Nairobi as number IR 69645/1.
The land was ‘sold’ at Sh205 million.
In a Gazette Notice number 13554 dated October 4, 2013, the Nairobi Land Registrar G W Kamuyu issued a notice that they would reconstruct a new Land Register since efforts made to locate the register had failed.
“Notice is given that after the expiry of sixty (60) days from the date hereof, the property register shall be reconstructed under the provisions of Section 33(5) of the Act, provided that no objection has been received within that period,” the Notice read.
On June 9, 2015, Irungu got copies from the couple’s son, Sandeep Kantaria which showed a resolution by the directors of Crason Holdings Ltd that he, together with his colleague Luseno had resigned from the Board of directors.
Further, a letter dated April 23, 2013 also indicated that he did not have any claims of whatever nature against the company.
“The signature against my name is indeed mine only that I did not have knowledge of what I signed. I also did not have knowledge that I was at any time a director of a company from which I would later resign,” he stated.
He also denied having signed an affidavit before an advocate based at Vision Tower along Muthithi Road in Nairobi to that effect.
Additionally, another document, Notification of Change of Directors and secretaries Form 203A, dated April 25, 2013 also bore their signatures.