Flamboyant businessman cum politician Zaheer Jhanda is having a rough time after reports linking him to the unfolding fake gold scam and is now being taken to court for defaulting Ksh8.9 million loan.
According to official documents regarding the matter, he only paid back the loan, which was given by a local bank, for six months before the payments stopped.
The loan has now grown by Ksh3.9 million from its original value to Ksh12.1 million because of defaulting on the payments.
His guarantor, Sameer Merllah Jhanda, is required to pay Ksh6.5 million to the bank as a result of his failure to meet the monthly payments.
The loan was forked out in an asset financing agreement for the purchase of a lorry.
This vehicle has since been impounded and auctioned at lower than the market value of Ksh5.1 million instead of Ksh6.87 million which was its value.
The local bank also moved to court after Jhanda failed to respond to their numerous demands for payment.
Collectively, the politician and his guarantor, Sameer Merllah Jhanda owe the bank Ksh18.5 million. It is not clear whether the two have any relationship.
Mr Jhanda is in hot soup with the authorities for his role in the Ksh400 million fake gold scam that defrauded the powerful ruler of Dubai.
Jhanda is alleged to be at the very centre of the scam though he claimed to be a victim of the fraud.
In a meeting with the press to clear his name, he noted that he couldn't differentiate fake gold from real gold given that he is a newcomer in the industry.
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