Mortgage lender Housing Finance (HF) #ticker:HFCK is entangled in a court battle with vocational training centre Vikrut Prerequisites Limited over a disputed Sh317 million loan.
Vikrut claims in suit papers that HF tricked it into thinking the two were partnering up to expand the vocational training centre, but that the lender only extended loans to it which have allegedly been exaggerated.
Vikrut now wants the High Court to stop HF from auctioning the Kangundo Road training centre it used as security, and to explain how the Sh89 million loan it owed the lender grew to Sh317 million.
HF in its response insists that it was Vikrut that approached it for financing to expand the vocational training centre which started defaulting on the loans almost immediately it was disbursed.
“HF did not offer any support to Vikrut aside from soliciting for HF the business of Vikrut through loans. HF negligently treated our commercial banking and lending facility as though it was simply a mortgage,” the firm says.
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