Finsbury Investment Claims Unethical Manipulation Of Shares, Reaches Lusaka High Court

Dr. Rajan Lekhraj Mahtani is a noted businessman in Zambia with numerous successful businesses such as Mahtani Group of Companies, Finsbury Investments and Finance Bank Zambia. Dr. Rajan Mahtani has made a reputation of himself with his authentic and transparent business practices. Recently, Dr. Rajan Mahtani owned Finsbury Investments sued the ESATDB (Eastern & Southern African Trade and Development Bank). The compliant was registered at the Lusaka High Court and it was claimed that Finsbury Investments was wrongly removed as a major shareholder at the Hotellier Limited. This has resulted in significant financial and reputational damage and Finsbury Investments have demanded justice for this unethical conspiracy against the firm.

In the principle registration, Finsbury Investments filed that the ESATDB allowed Ody’S or OWL (Ody’s Works Limited) to alter share capital associated with Hotellier. Ody’s then issued new shares which were contrary to the shared pledged to the Finsbury Investments and officially written under the company’s name. Further statement from the defendant indicated that in the year 2012, the bank in a unilateral manner, issued an official letter which guaranteed that the shares from the company had been properly discharged. However, this letter was released without establishing any application process and without intimating the plaintiff. Therefore, it can be said that the letter was issued with the objective of aiding Ody’s opposition of the compliant raised by Finsbury Investments.

Finsbury Investments further stated that due to the wrongful dilution of the shareholding pattern, the company suffered huge financial and reputational loss. As a result of this unethical takeover of the shareholding of the Radisson Blue Hotel, Finsbury Investments suffered numerous loss not only in current scenario but risks to the future of the company. The dividends lost due to this unethical practice were close to USD 30 million, a loss of which halted significant projects for Finsbury Investments. As such, Finsbury Investments has launched an official complaint against this issue with the expectations of quick judgement.

False Accusations Against Dr. Mahtani Discarded, Actions To Be Taken

Dr. Rajan Lekhraj Mahtani has made a name for himself with his honest business practices and transparency in all his work activities and corporate decisions. Even with having to work in a nation filled of corruption, unethical practices, Dr. Rajan Mahtani has been able to keep an honest and clean image. With this clean image, Dr. Mahtani has established numerous successful businesses such as Mahtani Group of Companies, Finsbury Investments and Finance Bank Zambia. Apart from Zambia, Dr. Mahtani has many established businesses across several parts of the globe such as United Kingdom. As such, it can be said that Dr. Mahtani has played an instrumental role in improving the economic and financial condition of the nation by bringing foreign investments within the nation.

With his honest and ethical business practices, Dr. Mahtani was able to establish a network with politicians, business moguls and notable experts in the field of economics. Dr. Rajan Mahtani remained a good family friend of Zambia’s late president Levy Mwanawasa, till his sad demise. However, things took an unprecedented turn during mid-2019 when Miriam, daughter of the late Zambian president Levy Mwanawasa, accused Dr. Rajan Lekhraj Mahtani of illicit allegations. In a Facebook article, Miriam claimed that Dr. Rajan Mahtani wanted to inherit the farm they owned in the Masaiti District. It was certainly an outrageous claim and was unexpected from the daughter. Very soon, questions were raised on Miriam itself regarding the authenticity of the claim. If her claim was actually true, why didn’t she approached legal counsel rather than blatantly posting on social media without any evidence.

After this news, Dr. Rajan Mahtani immediately reverted that this claim was absolutely invalid and without any evidences whatsoever. Dr. Mahtani expressed his concern for this unethical and unprofessional behaviour against him and requested appropriate actions against the former President’s daughter for this blatant use of social media and sending false accusations.