Top Bank In Zambia In News After Finsbury Investments Claims Conspiracy And Fraud Charges

Dr. Rajan Lekhraj Mahtani owned Finsbury Investments sued the ESTD (Eastern and Southern African Trade and Development) Bank over the shared of Radisson Blue. Dr. Rajan Mahtani’s owned Finsbury Investments claimed that it suffered financial and reputational damages due to the conspiracy by the bank and wrongful interferences by an external party resulting in the removal of Finsbury Investments as shareholders at the Hotellier Limited, commonly traded as the Radisson Blue at the Lusaka.

As per the statement filed by Finsbury Investment in principle registration at the Lusaka High Court, allegations were made that the ESTD Bank allowed Ody’s or Ody’s Works Limited to alter the share capital associated with Radisson Blue in an unethical and illegal manner. At the same time, new shares were issued by the bank which were significantly different from the original shareholding and was executed against the wishes and will of Finsbury Investment. Finsbury further stated that without information them, the bank issued a controversial letter without establishing any application form and without any formal process. In this controversial letter, the bank claimed that the plaintiff which in this case is Finsbury Investments, agreed to the change in shares in favour of Ody’s. Furthermore, the letter also claimed that the bank and the Plaintiff allowed Ody’s to dilute the shares and distribute it amongst the family members of the company who were the owners of Ody’s Works Limited in this case. As a result of the issuance of this unethical and controversial letter, Finsbury Investments was denied of a critical injunctive relief by High Court based on grounds that Finsbury Investments was not major shareholder of Radisson Blue anymore.

Furthermore, Finsbury Investments faced several roadblocks in its projects across Zambia. Some of these projects included a state-of-the-art medical facility, retail banking venture, housing construction project and many more. The reputation of the company is also at stake and as a result, Finsbury Investments is seeking justice from Lusaka High Court.