Reddy Vijay Movva defaults on sh8.6b bailout

A prominent Asian Property Developer, Reddy Vijay Movva, has subtly been dodging his financial redeemers, who rescued him from the fangs of a loan.

He has thus defaulted. This is how it occurred: Faced with the danger of losing his multi-million condominium flats over a $2.4m loan, Reddy Vijay Movva reached out to a firm of auditors who salvaged the property by paying Kenya Commercial Bank(KCB) the loan he had borrowed in February 2017.

However, Reddy has for close to two years now  been playing monkey tricks in order to avoid refunding the money the firm of auditors known as Grant Thornton Management  Limited paid to KCB on his behalf!

Sources say Reddy started by telling his financial redeemers  how he had actually processed Titles to each of the condominium flats located on Plot 65 Lugogo Bypass, which, in actual sense, he didn’t possess.

The auditors said to have lent Reddy their funds on the understanding that he had the Titles, which they would sell off in case he failed to refund the cash.

Reddy had  assured his benefactors that he had secured all the necessary plans from the city authorities for the developments he was erecting yet he, in reality, hadn’t.

Upon paying the funds to KCB, the auditors wrote an agreement with the bank on February 28 last year (2020), reflecting the same and Reddy undertook to refund their money with interest by December 31 last year.

The borrower upon failing to beat the deadline and on discovering that the condominium flats lacked titles, the lenders wrote to Reddy on March 10, 2021, rescinding the agreement they had entered earlier on with him, allowing them to attach and sell off the properties.

The auditors were via that letter asking Reddy to pay them in cash amounting to over $3.5m, factoring in the accrued interest.

Reddy failed to meet the request, prompting the lenders to resort to auctioning the condominium flats.

Cornered, Reddy moved to the courts of law to ward off the court bailiffs. Unfortunately, the agreement he had entered with the lenders while buying off his liabilities at KCB, had been certified by the commercial courts on May 16, 2021 with his consent and approval.

So, when he returned to court, the commercial courts’ registrar, Omar Kisawuzi reached for the consent judgement and red carded him.

All the same, Kisawuzi gave Reddy an ultimatum of two weeks to pay USD550,000 out of the money he owed the auditors or lose the properties to auction.

The deadline passed without the borrowers refunding the accumulated dollars still.

As you read this, Reddy is back in court, claiming now how he contracted to surrender only twelve units out of the forty-four making up the complex but that the lenders are plotting to sell the entire complex.

He confirms how he has never secured the Titles for each of the condominium flats as he told the lenders at the time they parted with their dollars, but adds that he has since secured the mother  Title for the complex and he is in the process of processing Titles for each of the condominium flats from the mother Title.

He in the alternative controversially questions the legality of the loan transaction in question.  He argues that there is breach of the law because the people who bailed him out at his direst hour aren’t licensed to engage in the business of money-lending!  The courts of law have not decided yet on the new developments put forward by Reddy.