Terra Agri Farm denies stolen equipment claims, cites shareholder dispute

Terra Agri Farm East Africa Limited (Terra Farms), a leading Ugandan agricultural solutions provider, has vehemently refuted recent accusations published in the Daily Monitor on April 13, 2024. The article alleged Terra Farms illegally imported multi-billion-shilling worth of agricultural equipment from Kenya.

Terra Farms representative, Jayesh Patel, categorically dismissed these claims and attributed the accusations to a recently resolved shareholder dispute between cousins Himesh Patel and Rajiv Patel, who were previously equal partners in RM Estate Limited, a large-scale Kenyan farming enterprise.

The statement highlights the close ties between Terra Farms and RM Estate, given Himesh Patel's stake in both companies. It portrays the accusations as a deliberate attempt to tarnish Terra Farms' reputation and disrupt its Ugandan operations.

A Family Feud

According to the press release, Himesh Patel and Rajiv Patel have been embroiled in a legal battle since 2022 concerning the control and management of RM Estate.

The dispute unfolded when Rajiv Patel allegedly attempted to freeze the company's accounts in Kenya, jeopardizing its operations. In response, Himesh Patel challenged this move through the Kenyan High Court (ELDORET HCCC NO. E006/2022), claiming Rajiv's actions were detrimental to the company.

The court ruled in Himesh Patel's favor, lifting the freeze on the accounts on July 22, 2022 (Court Order dated July 22, 2022). Additionally, on July 19, 2022, another court order (issued by Justice Ogola) barred Rajiv Patel and his associates from interfering with RM Estate's daily operations until a final resolution was reached. Waziri Omollo & Co Advocates, appointed by Himesh Patel, assumed legal representation for RM Estates during this period.

Settlement

Despite the recent settlement agreement reached in February 2024, endorsed by the Eldoret High Court on April 11, 2024, Jayesh Patel asserts that Rajiv Patel continues to engage in a smear campaign against Terra Farms by spreading misinformation.

"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," stated Jayesh Patel.

Terra Agri Farm East Africa Limited (Terra Farms) is one of the leading Ugandan agricultural solutions providers pulse uganda

Background

The press release delves deeper into the reasons behind the dispute. Given the complexity of managing shared business ventures while maintaining family ties, tensions arose between the cousins. Extensive negotiations culminated in a settlement agreement, formalized by the Eldoret High Court under Justice Nyakundi's decree.

The agreement restructured shareholding across various companies. Himesh and Jayesh Patel gained control of RM Estate Limited, while Rajiv and Sanjeev Patel secured full ownership of Kerio Holding Limited and Kaptagat Heights Limited.

Furthermore, the comprehensive settlement resulted in Rajiv Patel transferring his shares in RM Estate Limited to Jayesh Patel through signed documents, officially endorsed by the court in February 2024.

Terra Farms Denies Any Wrongdoing

The press release explicitly states that Terra Farms has never been involved in any robbery case, either in Eldoret or Nakuru. Neither Himesh Patel nor any company personnel have faced legal summons or charges related to the allegations.

Terra Farms emphasizes that all equipment purchases, including those from RM Estates and other suppliers, strictly followed Ugandan legal requirements. The company maintains that proper import procedures were adhered to for all equipment brought into Uganda, with verified invoices and completed payments.

Legal Action

Jayesh Patel expresses his disappointment at the spread of false information and its detrimental impact on Terra Farms' reputation and the Ugandan agricultural sector as a whole.

The press release concludes by stating that Terra Agri Farms East Africa Limited will pursue legal recourse against those spreading misinformation. T