Controversial gold dealer Zaheer Meriahi Jhanda has been dragged to court following Sh8.1 million loan.
The Kenya Commercial Bank (KCB) has sued the businessman, who has featured in the ongoing Sh400 million gold scam, for defaulting on the loan he took to purchase a lorry.
The bank lent Zaheer in an asset financing agreement, but he defaulted after servicing it for six months only.
According to court papers seen by the Standard, as at November 2016, the outstanding portion of the loan had accumulated to Sh12.1 million.
Zaheer's guarantor, one identified as Sameer Merllah Jhanda, owes the financial institution Sh6.5 million.
When the businessman stopped servicing his loan, KCB clamped the lorry, a Mitsubishi Fuso, and auctioned it on April 26, 2016, for Sh5.1 million.
The market value of the lorry at that time was Sh6.87 million, hence a loss of Sh1.77 million.
Last December, the bank moved to court seeking orders to enable it to recover Sh18.6 million which it is demanding collectively from Zaheer and Jhanda (his guarantor).
According to the institution's lawyer, Walker Kontos, the duo have acknowledged the debt but neither has made a commitment to repay nor responded to the petition.
KCB has threatened to move to court if Zaheer does not respond to bank's demands relating to the debt, reads a notice published last week.
In an exclusive interview with Sunday Standard, Zaheer claimed he had been hired by the company buying gold on behalf of the Dubai royal family to offer consultancy services in the deal he said was worth Sh30 billion.
The Kisii politician said he was expected to make Sh1.4 billion upon conclusion of the multi-billion deal.