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Atul Shah Loses Other Assets To Brokers As Nakumatt Debt Demons Come To Trouble –

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The Court of Appeal has refused to annul the auction of the assets of former Nakumatt CEO Atul Shah, which was auctioned for Ksh1.04 billion by the Commercial Bank of Kenya (KCB).

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This is Shah’s second property to be auctioned off by KCB after his Lavington home over a Ksh2 billion debt he guaranteed to Nakumatt.

The property owned by Nakumatt headquarters and other tenants was quickly auctioned off, even though KCB feared that other lenders would come to repay the debt owed to Nakumatt.

According to Shah, the property in Nairobi’s industrial area was not valued during the auction.

However, the Court ruled that the auction could not be reversed, as the buyer, Furniture Palace International Ltd, was not included in the case.

“It will therefore not be fair and unfair to issue an order that will affect his tenure rights without being given a chance to be heard. In the end, the debt will not be rejected,” said Judges William Ouko, Roselyn Nambuye and Asike Makhandia.

Read: KCB Auctions Nakumatt CEO Atul Shah’s Lavington Home Over Sh2 Billion Debt

Other banks that were looking at the property before it was sold by KCB include Stanchart and DTB Bank, which claims a total of Ksh4.5 billion.

Nakumatt store closed with debt of Ksh30 billion, and Ksh18 billion owed to retailers, Ksh4 billion to commercial paper holders and some to banks.

Nakumatt owes DTB Bank Ksh3.6 billion, Stanchart Ksh900 million, KCB Ksh1.9 billion, Bank of Africa Ksh328 million, UBA Ksh126 million and GT Bank Ksh104 million.

The DCI Bank Fraud Unit is investigating Nakumatt on charges of theft and money laundering.

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