Terra agri farm dismisses report of importing stolen equipment
Terra Agri Farm East Africa Limited has dismissed as untrue, allegations that it imported stolen multi-billion-shilling agricultural equipment into Uganda.
The claims, made by Rajiv Patel, allege that Terra Agri Farm EA illegally received farm machinery and equipment from RM Estate Limited in Kenya, which the latter is now reportedly struggling to recover.
In a statement on Tuersday, Terra Farms' representative Jayesh Patel categorically dismissed the accusations as baseless and malicious, attributing them to a recently resolved shareholder dispute between cousins Himesh Patel and Rajiv Patel, who previously have been equal shareholders of RM Estate, a large-scale farming enterprise in Narok County, Kenya.
Himesh Patel also holds a stake in Terra Agri Farm EA, manifesting the close ties between the two companies and framing the allegations as part of an attempt to undermine Terra Farms' reputation and business operations in Uganda.
According to the statement, since 2022, Himesh Patel and Rajiv Patel have been embroiled in a legal dispute in Kenya over the control and management of their company, RM Estate Limited.
Rajiv initially sought to freeze the company's accounts in Kenya thereby stifling its operations. This prompted Himesh Patel to run to the High Court in Eldoret vide a suit (ELDORET HCCC NO. E006/2022) challenging Rajiv Patel's conduct within the company, which he described as detrimental.
An application to have the accounts unfrozen was heard and Honourable Nyakundi J ultimately unfroze the accounts vide Court Order dated July 22, 2022. Additionally, a separate court order was issued on 19th July 2022 by Honourable Justice Ogola preventing Rajiv Patel and his associates from involving themselves in the day to day running of the company pending a full hearing.
RM Estates was represented by Waziri Omollo & Co Advocates, appointed by Himesh Patel in the best interest of the company.
Jayesh Patel observed that despite the recent resolution of the disputes between the two cousins through a settlement agreement dated February and endorsed by the High Court of Kenya in Eldoret on April 11, 2024, Rajiv Patel has continued to engage in a smear campaign against Terra Agri Farm by uttering falsehoods and misinformation such as in the what was published by Daily Monitor.
“It appears the apparent aim is to damage Terra Agri Farm's reputation and undermine its accomplishments in revolutionizing large-scale farming in Northern Uganda. Terra Agri Farm dismisses the article in the Daily Monitor as baseless and misleading,” said Jayesh.
Background
Given the high stakes involved and the growing challenges in collaborating effectively within their shared business ventures and as family members, the warring parties engaged in extensive negotiations that ultimately led to a settlement agreement.
This agreement was finalized in the Eldoret High Court and solidified by a decree issued by Justice Nyakundi, which adopted the settlement terms as a judgment of the court in the cases ELDORET HCC NO. E006/2022 and ELDORET HC PET NO. E009/2022.
The settlement facilitated the restructuring of shareholding across different companies, with Himesh and Jayesh Patel gaining control of RM Estate Limited, while Rajiv and Sanjeev Patel obtained full control of Kerio Holding Limited and Kaptagat Heights Limited.
Furthermore, the comprehensive settlement, which was endorsed by the court in February 2024, resulted in Rajiv Patel executing share transfer documents and transferring his shares in RM Estate Limited to Jayesh Patel.
Terra Agri Farms EA in the statement denied involvement in any robbery case filed in Eldoret and moved to Nakuru, adding that neither Himesh Patel nor any other company personnel have been summoned, charged, or subjected to legal proceedings in relation to this matter, the media statement reads in part.
The company noted that all equipment purchases, including those from RM Estates and other suppliers, complied with legal requirements. The company followed proper importation procedures into Uganda and verified all invoices with full payments made.
The spread of false information and unsubstantiated accusations against Terra Agri Farms EA caused unnecessary attention in the Ugandan agricultural sector and harmed the company’s reputation, added Jayesh Patel.
“Terra Agri Farms East Africa Limited will thus pursue all legal options against those spreading false information. The company remains committed to maintaining the highest standards of integrity and transparency and will take legal measures to protect its reputation and business interests,” the statement concludes.
Terra Agri Farm Limited has built a strong portfolio within a short time in Uganda’s agriculture market. The company is one of the leading companies offering agricultural equipment in Uganda. It has a large clientele spread all over Uganda, and is in the middle of implementing a number of programmes in the country.
