General News
Kenya: Win for Rajendra Sanghani, Jayant Rach in Sh100m City Land Dispute
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Two businessmen have suffered a blow after the High Court ordered the cancellation of a title to a land in Nairobi’s Westlands area, ruling that they acquired it fraudulently.
Justice Samson Okongo of the Environment and Land Court issued a permanent order restraining Fairmile Investments ltd and its directors from claiming the land, after ruling that the sale of the land in 2008 for Sh12 million, was fraudulent.
Mr Bhupesh Rana and Bhogilal Ganatra claimed that they were instructed to sell the property, which they did in October 2008 to Fairmile Investments for Sh12 million.
But Mr Rajendra Sanghani and Jayant Rach, who are administrators of the estate of Ratilal Sanghani said the land belonged to their father and the sale was illegal.
Mr Rajendra told the court that he was given the land by his father in his will after purchasing it in 1973 for Sh100,000 but the seller, Maganbhai Patel died before he transferred the property.
Fairmile Investments
The Judge ruled that the transfer of the property was illegal and pleas by Fairmile Investments that it was an innocent purchaser cannot validate a fraudulent title.
“Even if the 1st defendant (Fairmile ltd) was an innocent purchaser for value, there was no valid title to pass to the company,” the judge said.
Justice Okongo said the principle of innocent purchaser does not validate an illegal title.
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“If follows that even if the 1st defendant acquired the suit property from the second defendant innocently for valuable consideration, that did not sanitise an invalid title that the second defendant held,” he said.
Mr Rana and Mr Ganatra are facing charges before a Kiambu court over the transfer of the land. They are charged with conspiracy to defraud, procuring registration by false pretense and forgery. The two claimed they were granted power of attorney to sell the land to Fairmile.
Fraud and deceit
Fairmile on its part argued that Rajendra and his co-administrator have never held any interest in the property and the company which allegedly purchased the land could not renew the lease to the property because it had been wound up.
Justice Okong’o said he was satisfied from the evidence that the title was obtained illegally.
“There is no doubt the 2nd defendant obtained renewal of the lease in respect of the suit property through misrepresentation, fraud and deceit .The suit property was also not available for allocation,” he said.
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