KCB has advertised the sale of 78 of two-bed apartments at Greatwall Gardens in Athi River to recover a KSh1.9 debt that the developer Erdermann Property Limited had borrowed.
In a notice in one of the daily newspaper on May 6, KCB Bank through the auctioneer Garam Investments, advertised the units for sales even as the owners made frantic efforts to stop the auctioning.
Garam Investments said the sale would take place at its offices on May 21.
However through a notice as well the property developer had warned public against buying the property.
Last month, Erdermann Property Limited lost a KSh1.9 Billion loan case against Kenya Commercial Bank.
Erdermann Property Ltd, the developer made a prayer to the court saying that homeowners were innocent purchasers and that the units were sold by mistake, the prayer which was dismissed by a bench of three judges.
READ ALSO:
Mpesa Foundation holds free medical camp in Mathare North Sub-county today
Justices Jessie Lesit, Gatembu Kairu and Grace Nyenye Macharia in their ruling said there was no proposal that the lender would not be able to compensate the property developer.
“Ultimately, we find that the application is unmeritorious. We hereby dismiss it with costs to the respondent (KCB),” the judges ruled on Friday last week.
“We note, as the learned Judge of the High Court did, that the said third parties who bought the 100 units are not parties to this dispute. The burden to inform them that the 100 units were securities to a loan facility lay with Erdemann Property Limited.”
The court was told that the property was charged to lender but the developer sold it to innocent third parties who are now occupants.
Erdemann Limited secured a loan from KCB to put up 600 housing units. The property developer was supposed to hand over 100 unites to KCB upon completion, but the former failed to honour the agreement.
It instead sold 100 units belonging to KCB Bank.
Erdemann Property Limited had moved to the Court of Appeal after losing the case in the High Court but their lawyers failed to convince the Court of Appeal to stop KCB Bank from auctioning the 100 units to recover the loan balance owed by the company.
The court in its ruling has dismissed an argument by the beleaguered legal team representing the developer that the 100 homeowners are innocent and that they had purchased the said units unknowingly.
Erdemann is owned by Chinese who has been in the real estate business in Kenya since 2003. Great Wall Gardens at Athi River, Mavoko municipality.
By our reporter
Get more stories from our website: Sacco Review.
For comments and clarifications, write to: Saccoreview@
Kindly follow us via our social media pages on Facebook: Sacco Review Newspaper for timely updates
Stay ahead of the pack! Grab the latest Sacco Review newspaper!
