A collapsed real estate company owned by Indian tycoon Mukesh Ambani has sued the taxman for refusing to refund it stamp duty paid in a botched Sh1.3 billion land purchase deal with the National Social Security Fund (NSSF).
Delta Corp East Africa Limited claims that the Kenya Revenue Authority (KRA) has refused to refund Sh55 million it paid in 2008 as stamp duty for five parcels of land next to the Laico Regency Hotel before the deal went sour.
The NSSF had agreed to sell the land to Mr Ambani’s Delta Corp for Sh1.3 billion but the deal did not materialise. Mr Ambani and his partners in 2013 opted to wind up Delta Corp, whose liquidator now says the taxman’s failure to refund it Sh55 million is delaying the process.
Delta Corp obtained an order calling off the deal in court in June 2009 after a year-long legal battle with the NSSF.
“The transaction for the aforesaid properties aborted after a dispute arose between the parties. As a consequence, a decree was issued June 24, 2009 wherein the court nullified the transfers in favour of Delta Corp. The court also directed the KRA to refund the stamp duty paid. Despite approval and numerous demands, the KRA has refused to refund the sum of Sh55 million,” Mr Ambani’s firm holds.
Delta Corp is majority owned by Mr Ambani’s conglomerate Reliance Industries. The land deal saw the anti-corruption watchdog institute criminal charges against a judge and three others in court.
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