Businessmen dragged to court over US$1.4 million p...

Businessmen dragged to court over US$1.4 million property fraud

Philemon Jambaya

Zim Now Editor

Two businessmen, Satishbhai Patel and Ebrahim Mahomad, have been brought before the Harare Magistrates Court on allegations of fraud involving a property valued at US$1.4 million.

Patel (60) and Mahomad (57) appeared before Magistrate Marehwanazvo Gofa, who released them on free bail. The matter has been remanded to October 31 for trial.

The complainant is Meadow Sweet Investment Pvt Ltd, represented by its director Nyasha Watyoka.

According to the state, in 2002, Meadow Sweet Investment purchased a piece of land developed into double-story flats in Salisbury Township. The property was bought from John Dimitriou Mallis and Myrsina Myrtoula Dimitriou Mallis and was duly transferred into Meadow Sweet Investments' name.

Due to the company's directors leaving the country in 2004, the property remained undeveloped. In 2011, Patel and Mahomad allegedly hatched a plan to defraud Meadow Sweet Investment by selling the property.

They forged documents, including a special resolution appointing Patel as a director and a power of attorney authorizing Cuthbert Chengeta to transfer the property to Zimbabwe Electricity Regulatory Authority (ZERA).

The duo successfully sold the property to ZERA for US$1.4 million and the transfer was completed under deed number 2850/2011.

In 2023, one of Meadow Sweet Investment's directors returned and discovered that the property had been renovated and was being used by ZERA.

The state alleges that Patel was never a director of Meadow Sweet Investment and had no authority to sell the property. Investigations have also revealed that the ZIMRA capital gains tax certificate submitted for the transfer was fraudulent.

Patel and Mahomad are accused of acting unlawfully and without any legal standing to sell the property.