Victim testifies in $460k fraud case

Prosper Dembedza Court Correspondent
The trial of an Indian woman and her son accused of selling her late husband’s business, which was part of an unregistered estate resumed last Thursday with the complainant telling the court that he paid the pair $250 000.

The suspects, Nighert Savania (62), who is the widow of Mahendra Savania, and her son, Deen Mahendra Jivan Savania (33), are facing fraud charges.

They are, however, denying the allegations.

The complainant, Nathan Mnaba, told the court that he paid $250 000 to Nighert and Deen for the purchase of Norwich Trading which was owned by the deceased.

Mnaba said after paying the money he went on to inject more than $210 000 before discovering that the company was not registered under the deceased’s estate.

Prosecuting, Ms Venancia Mutake alleged that after the death of Mahendra on March 9, 2010, Nighert took over the business.

It is alleged sometime in 2011, Nighert and her son connived to sell the business.

She misrepresented to the complainant that she owned the majority shares in the company.

The court heard that she kept it a secret the fact that Norwich Trading was part of the deceased’s estate which was yet to be registered with the Master of the High Court.

She also did not disclose that 29 percent of the shares were held by other people, it is alleged.

Parties agreed on a purchase price of $350 000 and a payment plan.

It is alleged that between August 2011 and January 6, 2012, the complainant paid a total of $250 000 to Nighert leaving a balance of $130 000.

The court heard that the complainant injected capital of $210 000 into the business.

Later, the complainant went to the Registrar of Companies to regularise the purchase and realised that Nighert and her son were not share- holders.

To cover up the offence, Nighert went to register the estate of her late husband and an executor is yet to be appointed.

The complainant lost $460 000 and nothing was recovered.

You Might Also Like

Comments

Take our Survey

We value your opinion! Take a moment to complete our survey