‘Con’ organization to lose housing estate
After enticing many rich Kigali clients to but state-of -the -art houses in Green-Park Villas, DN International is now on brink of losing the property to the Kenya Commercial bank, where the construction company borrowed the funds.
The KCB bank in Rwanda has announced the auction of the villas in order to recover an estimated Rwf3 billion loan acquired by DN International in 2010.
This real estate case become the most controversial issue last year when it come to the limelight that the construction did not in actual sense own the houses but had
DNI acquired the loan from KCB to construct Green Park Villas consisting of 50 housing units in Rusororo, about 15 kilometers from Kigali International Airport. Each house is valued at Rwf75million.
The bank officials say that following a default in loan repayment, the Bank reviewed the circumstances under which the developer acquired the loan and a decision was taken to auction its property.
However, this bank move has also arisen some trials from material suppliers – who claim DN International (DNI) has not paid for materials used to construct another city estate and now want the authorities to intervene.
Apparently, this is not the first time for the construction company to be entangled in such fraud deals with banks. The same construction company has since last year had issues with another bank- Fina Bank – with whom they had entered a deal to put 28 modern houses at Hill View Estates, however the developers failed to repay the debt- and subsequently leading to the bank confiscating the houses, an action which was not welcomed by some clients who had purchased the houses at over 55millions each.
The 19 victims in this earlier real estate saga, who say that were ‘conned’ into buying the houses have since then dragged the case to court. Meanwhile the Fina bank had moved to auction of the controversial estate, which has total 28 units, is reportedly worth Rwf 848 million.
One of the victims, Grace Mutsinzi, they agreed to hire one lawyer to represent them all in court.
Mutsinzi says that during the first appearance, DNI did not turn up in court and the judge adjourned the case to September so that a public call can be made for DNI to come to court, if they don’t come, the case will proceed.
