Woman sues Ali Punjani, others over multibillion fraud allegations

Multiple cases filed before a Nairobi court have thrust Mombasa businessman Ali Punjani into the limelight

Businesswoman Fatmabai Sherali has sued Punjani, several banks, company directors, and the National Lands Commission (NLC) over allegations of fraud.

However, all the accused parties deny the allegations and seek to have the cases dismissed. The cases involve Punjani, Parviz Haiderli, Zuher Ladak, her nephew Ali Badrudin, and niece Nazlin Aminmohamed. Also cited are the law firm Anjarwalla and Khanna (ALN Kenya), along with the Director General of Business Registration Service. Other parties named in the case, include African Banking Corporation (ABC Bank), NLC, and Equitorial Secretaries and Registrars.

In the cases before Justice Peter Mulwa, Sherali accuses Haiderli and Nazlin of using Abdeel Enterprises Limited and Abdeel Investments Limited, claiming the businessman and her relatives illegally used her credentials to conduct fraudulent transactions.

On the other hand, Abdeel, Badrudin, Nazlin, Amynaz, Ladak, and Punjani want the cases struck out. They argue that Sherali is mentally disturbed, with a medical report supporting their claim. They also contend that she lacks the capacity to file these cases and should be forced to deposit security to protect them should they prevail.

Regarding ABC Bank, Sherali alleges that Abdeel took a Sh300 million loan without her consent or approval. She claims she was first removed as a director of the firm before the accounts at the heart of the case were opened.

Sherali said she only discovered the accounts when she borrowed money from her community, the Africa Federation Sia Ashna-Jamat Nairobi, to finance her daughter’s education. Those who knew about the money in the accounts reportedly dismissed her as a ‘borrowing billionaire.’

“The plaintiff verily avers that whereas she was struggling to provide basic needs, such as education for her children, the defendants’ actions caused her further difficulties due to her perceived image of wealth. Their actions have also aggravated her challenges in accessing loans for other needs,” Sherali claimed.

Sherali further stated that the ABC accounts had transactions worth US$16.8 million (Sh2.1 billion) and Sh3.6 billion, calling these transactions suspicious. She accused ABC of concealing information that Abdeel had an account and had allegedly taken substantial loans. She argued that ABC had denied her position as a director or shareholder in the company.

Sherali also claimed that ABC’s information about shareholding was contradictory, as it had forwarded her name to the Credit Reference Bureau(CRB). “I did not know the reason, but my recent discovery has given me reasonable grounds to believe that my misfortune may have been caused by the defendants’ unlawful activities and my unauthorised inclusion as a director or shareholder for fraudulent transactions,” she said.

ABC Bank denied the claims, asserting that it had not engaged in any fraudulent activity. The bank stated that when the accounts in Abdeel’s name were opened, Sherali was not a director. However, it argued that she later became a director on September 28, 2011.

The bank further argued that Sherali had signed personal liability documents, making her liable for the unpaid loans. “This suit appears to be influenced by extraneous personal motives not privy to the defendant, and the allegations made are intended to damage the reputation and image of the sixth defendant. Therefore, the sixth defendant reserves its right to seek to have the case struck out,” ABC stated.

Meanwhile, Sherali claims that Anjarwalla representative Mona Doshi had discussed the ownership of Abdeel with her daughter. According to Sherali, Doshi told her daughter that Punjani was the true owner of Abdeel. In their joint reply, supported by Nazlin, the defendants claim that Sherali’s criminal complaint had been dismissed based on the medical report and that she had a separate land case before the Mombasa court. “I have read the medical report, and after having its gravity explained to me by my advocates, I believe she lacks the mental capacity to institute the suit. Some paragraphs state that her delusion is so severe that she believes she is having a heart attack and needs to be rushed to hospital,” Nazlin claimed.

Anjarwalla has sought to have its name removed from the case, arguing no wrongdoing had been cited. It admitted incorporating Abdeel Investments in 2007 but stated it later sold the company to Haiderli and Nazlin. The firm said it had no knowledge of the company’s affairs thereafter.

Equitorial Secretaries seeks to have the case struck out, claiming it’s an abuse of court. They resigned as Abdeel’s secretaries in 2020 after failing to obtain crucial information and fees, including updating annual returns since 2016. In her further affidavit, Sherali argued that despite the hardships, including the loss of her husband and children, her mind was clear. She has requested the judge to allow her to undergo a mental test at a medical facility of his choice to confirm her mental state.

Sherali has also filed a separate case against Abdeel, Cine Enterprises Limited, Cine Investments Limited, and NLC. She claims that Abdeel holds 10 shares in Cine Enterprises, while the majority shareholder, Nazlin Aminmohamed Nathoo, owns 72 per cent of the shares. She has also alleged that Cine Investments does not have a record of ownership.

Sherali claims that NLC had published its intention to acquire land for the LAPSSET Project, listing Cine Enterprises and Cine Investments among those to benefit from compulsory acquisition. She argues that taxpayers could lose billions if the NLC proceeds with the payment.

She alleges that Cine Investments is fictitious and that she was illegally added as Abdeel’s director. “In the event that the money is paid out to the second defendant as intended under the gazette notice, it would go to proverbial ghosts who would disappear without a trace,” Sherali argued.

Meanwhile, Nazlin and Abdeel argued the case was filed in the wrong forum, claiming it should have been filed in the Lands Court, not the Commercial Court. The cases will continue on January 30, 2025.