Karuturi claims Indian bank destroyed MD’s Sh273m house
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Troubled flower firm Karuturi Limited accuses Indian Bank ICICI of destroying its managing director’s farm house valued at over $3 million despite an existing court order stopping any interference with the Naivasha-based company’s property.
The Naivasha house is for the company MD, Sai Karuturi, who maintains that some of his personal property was in the building that was demolished without any prior notice.
ICICI is yet to respond to the claims.
Troubled flower firm Karuturi Limited has accused Indian Bank ICICI of destroying its managing director’s farm house valued at over $3 million (Sh273 million) despite an existing court order stopping any interference with the Naivasha-based company’s property.
Karuturi says in court documents that ICICI, through receiver manager Lolluri Kamasastry, destroyed the multimillion shilling property in a bid to damage the flower firm’s brand equity.
Karuturi and the Indian bank are locked in a dispute over a $40 million (Sh3.6 billion) loan that the flower firm took from the Mumbai-based lender to boost its business.
Karuturi holds that its loan balance is $9.84 million (Sh885 million), and not the $19.9 million (Sh1.7 billion) demanded by ICICI.
“Information on the destruction came to the directors’ knowledge recently. They have taken every step to communicate with the receivers with a view of stopping the unlawful demolition. The receivers are yet to respond and have not confirmed that the destruction will be stopped,” says Karuturi.
The Naivasha house is for the company MD, Sai Karuturi, who maintains that some of his personal property was in the building that was demolished without any prior notice.
ICICI is yet to respond to the claims.
Justice Francis Gikonyo ordered the bank and Mr Kamasastry —the receiver it appointed— to respond to the claims before mention of the case on March 19.
Two other receiver managers, Ian Small and Kieran Day, who were appointed by CfC Stanbic which is also claiming a $6.5 million (Sh585 million) loan from Karuturi have also been dragged into the row, with the flower firm accusing them of colluding with Mr Kamasastry to destroy its property.
They have also been ordered to respond to the destruction claims.
Karuturi filed the suit last month to stop ICICI from auctioning its property, and now claims the Indian bank is trying to lower its brand equity by interfering with its property, some of which was not used to secure the Sh3.6 billion loan.
“The company hospital has been vandalised deliberately, our premier league football team neglected to break morale and destroy brand equity. The receivers continue with illegal harvesting of produce from farms that are not under receivership, particularly Sera and Kimwatu farms,” says Mr Karuturi.
ICICI had between 2010 and 2011 extended a foreign currency term loan of $40 million to Karuturi in two tranches alongside a working capital demand loan of $11 million (Sh990 million).
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