Chatur, City Hall property disputes turn uglier by day

Mr Madatari Chatur was an optimistic and enterprising young man in 1968 when he opened a small electronics shop in Nairobi.

And as he built his empire, little did Mr Chatur know that his investments would be undermined by officials and faceless people.

In the last one year, the real estate billionaire has fought numerous battles with City Hall, resident associations and faceless characters, all trying to get a piece of his empire.

The tycoon has interests in the hospitality and real estate industry in the city and several other towns. He owns Concord Hotel and Diamond Plaza in Parklands, Nairobi.

Two prime properties in the city's are claimed by the county government and the Chatur family.

Two months ago, Kenyans woke up to the news that Mr Chatur intended to sell his entire property portfolio valued at Sh80 billion.

A LOT OF DAMAGE

Now Chatur family members say they had nothing to do with the advertisements that appeared in the dailies, adding that some of the properties mentioned do not belong to them.

Chatur Group of Companies chief executive officer Abdul Majid told journalists that the family does not know who made the announcement.

“The advert has done a lot of damage to the business. Despite repeated denials that we are not selling, people are still coming and asking for property. Our tenants are apprehensive,” Mr Majid said.

In February, Nandi Hills MP Alfred Keter and another man were arrested at the Central Bank of Kenya building where officials said they had gone to claim treasury bills valued at Sh633 million.

PROCESSING LOANS

It would have been an ordinary news story to the family had the bank not said that the man with the lawmaker was called Madat Saburali Chatur.

Mr Chatur was born in Taita-Taveta County 68 years ago but investigators found out that the person who had gone to claim the bills was Indian born Mohan Mahesh.

Following the incident, several banks, which were processing loans and other transactions for the Chatur Group of Companies withheld the money.

However, the two incidents pale into comparison with other battles the Chatur family has been fighting with the Nairobi County government.

In early August, Nairobi Governor Mike Sonko supervised the recovery of “grabbed" public land in Gigiri.

The county boss said the land was meant for a fire station but had been taken over by a developer who built a showroom.

Since then, fire engines have been stationed at the site.

LEASED PROPERTY

Documents seen by the Nation show that the Nairobi City Commission, which ran the affairs of the capital allocated a Mr Simon Muema the property in 1990.

Ten years later, Mr Muema sold the land to Mr Robert Otachi.

In 2011, Mr Otachi sold the land to Scorpion Properties Ltd, which is owned by the Chatur Group.

City Hall allowed development on the plot. Mr Chatur then leased the property to a firm which built the vehicle showroom.

In august 2016, the Nairobi County Assembly began investigating the ownership of the plot. The matter has been taken to courts.

New Muthaiga Mall in Thigiri has also been subject of a dispute between City Hall and Chatur Group.

RIPARIAN LAND

The county government wants to know how Mr Chatur acquired the piece of land the mall is built.

There were reports that the mall was to be demolished as it stood on riparian land.

Land documents indicate that the 1.326-hectare piece was first issued to Gemini Properties Ltd in on January 1, 1978 for a 99-year lease period.

Gemini Inc was owned by Dr Satyavrat Ramrakha and his wife Urmila Satyavrat Ramrakha.

The lease, however, came with constraints.

“The land and buildings shall only be used for a clinic, a day nursery school and two residences for the teacher and doctor in charge,” special condition Five on the title deed stated.

EDUCATIONAL PURPOSES

The Ramrakhas operated a private nursery school and a clinic on the property until December 1986 when they sold the company plus the land to Mr Madatali Saburali Chatur and Naushadali Saburali Chatur.

In 2003, the company got the extension of use on the plot to include a primary and secondary school, boarding facilities, auxiliary offices and related educational purposes.

However, the expansion of the school met strong opposition from residents who said it would interfere with peace and the serenity of the area.

By mid 2000s, the school was hardly turning in a profit and this made Gemini to petition the registrar of lands to revoke the special condition on the title.

FORMAL RESPONSE

The request was granted on March 14, 2008 and the condition on the grant was substituted with “ … the land and buildings shall only be used for shops and offices.”

This allowed Gemini to convert the school into a mall.

Gemini says it has not received a formal response from the county government concerning the intended demolition even after submitting the required files.

However, tenants fearing to be caught on the wrong side of the demolition, are fleeing in droves.