Chinese company drags KDLB to court over Kololo Land

Jun 21, 2014

A Chinese business company, Zhang’s Group Company Ltd has sued Kampala District Land Board (KDLB) for breach of lease agreement, seeking to be given vacant possession of the contested piece of land or be refunded over sh6b it paid.

By Hillary Nsambu                   

A Chinese business company, Zhang’s Group Company Ltd has sued Kampala District Land Board (KDLB) for breach of lease agreement, seeking to be given vacant possession of the contested piece of land or be refunded over sh6b it paid.

Zhang’s Group incorporated under the laws of Uganda, sued through Kiwanuka & Karugire Advocates, seeking for orders requiring KDLB to surrender to it physical piece of land located at Kololo hill in Kampala or refund a total of sh5,449,679,766 it has so far paid out for the property to be registered in its names. 

It would also claim interest of 23% per annum from the date of filing the case.
 
The court has also issued summons for KDLB to file a defence against the suit within 15 days.
 
The suit property is a prime piece of land comprised in LRV 4452 Folio 15 Plot 29 Hill Lane – Kololo in Kampala.
 
According to the plaint that was filed on Thursday in court, the plaintiff alleged that it applied for a surveyed piece of land at Kololo Hill Lane neighbouring Plot M895, which KDLB leased to it. 

The plaintiff paid sh5,117,000,000 as its correct market value. 

It is also alleged that the company paid sh173,625,120 being premium; 13,890,009 worth of ground rent and sh3,824,754 worth of stamp duty and; the land was demised to it as the title was issued to it as the registered proprietor.

Upon receiving the certificate of title, the company sought to access the property, but the UPDF refused it to enter, claiming that the property belonged to it. 

It is further alleged in the plaint that despite writing to the Special Forces Commander, showing proof of lease agreement with KDLB, in an effort to access its property, no avail hitherto.  

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