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Troubled businessman Mukesh Shukla remanded to Luzira over Shs220m fraud

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BUSINESSMAN MUKESH SHUKLA ALIAS SHUMUK IN THE COURT DOCK (PHOTO/FILE

The Nakawa Chief Magistrate’s Court has remanded businessman-cum politician Mukesh Shukla Babubhai aka Shumuk to Luzira prison for defrauding shs220m Mr Shahid Mahmood Alvi, the managing director of Japan Auto Ltd, an auto dealer in Kampala.

Mukesh, the Founder and CEO of Shumuk Aluminum Industries was arraigned before the Nakawa court presided over by Chief Magistrate Elias Kakooza on Wednesday who read to him the charges of obtaining money by false pretence and conspiracy to defraud, contrary to section 309 of the Penal Code Act CAP 120.

Mukesh is facing the charges together with his company manager Ms Judith Ayebare, and Shumuk Group of Companies accountant Kadikar Dharamdip Anilkumar, who were not present in court on the afternoon.

According to the prosecution charge sheet, it is alleged that between November 2020 and November 2021 at around Banda Industrial Area and Nakawa Industrial Area, with intent to defraud, Mukesh obtained USD 27,950 (about 105 million) and over Shs116 million from the managing director of N.S Japan Auto Ltd, Mr Shahid Mahmood Alvi, allegedly leasing/renting him two plots of land, whereas not.

Chief Magistrate Kakooza has remanded Mr Mukesh until May 24, when the state will respond to his bail application. “Since the state has asked for more time to peruse through the case file, the accused is remanded until May 24 when they will respond to his bail application,” Mr Kakooza ruled.

Through his lawyer Patrick Bwango, Mukesh asked to be granted bail for bail on grounds that he is an outstanding member of the community who was a Member of Parliament aspirant, a family man with wife and children, has a permanent place of abode, the offence is bailable and does not involve violence, has substantial sureties and is of an advanced age.

Court further heard that since the prosecution has not read the file and cannot commit itself over the stage of investigations Mr Mukesh should be released on bail.

“He is willing to reconcile with the complainants and seeks an opportunity to do so. And he is willing to deposit Shs20m for a start as a gesture of good faith and a sign of willingness to reconcile,” Mr Bwango told the court.

However, on the issue of reconciliation, state prosecutor Ms Mariam Kuluthum told the court that Mr Mukesh should go to a court mediator if he is willing to reconcile and should put paperwork on the table.

Speaking to journalists after the court ruling, the complainant, Mr Shahid said he tried to engage his brother and the Pakistan community to compel Mukesh to return his money but in vain, thus involving the police.

The Shumuk Group property run-ins never end. They always show up and occupy prime-time news and make headlines.

The company’s protracted battles with the Katatumba family, and lately Bank of Baroda, among other financial institutions over property ownership and debt disputes, are so fresh that many Ugandans have become accustomed to them.

Whereas it is difficult to understand the extent of their impact on the company, they have definitely had a toll that will take years to shake off.

And now, recently, Shumuk is yet again engaged in another property battle over a two-acre piece of land in Kampala, Nakawa Industrial Area.

The piece of land under dispute is located on plat 26 on Mukabya Road in Nakawa Industrial Area. It has been the subject of two separate court cases, with the first coming about 25 years ago and another just about three years ago, in 2021.

It is difficult to estimate the value of the land but it is so prime that it sits on the lower end of Spear Motors on Jinja Road in Nakawa and is sandwiched by car bonds, warehouses and a City Oil fuel station on the opposite side, which also houses Café Javas.

For a long time, the land, just about 500 metres from one of the Shumuk Group factories, has largely remained undeveloped, save for a makeshift washing bay and an overgrown backyard.

However, about three weeks ago, it was fenced off, and within a few days, construction works had begun behind an improvised iron sheet fence.

Mukesh says that one of the Shumuk Group subsidiaries took possession of the two-acre piece of land in 1987.

Daily Express-Uganda

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