Terra Agri Farm East Africa has denied media reports alleging that it imported stolen agricultural equipment into Uganda.
The allegations published in the Daily Monitor newspaper of April 13, 2024.
The claims were made by a one Rajiv Patel who said Terra received farm machinery and equipment from RM Estate Limited in Kenya, which the latter is now reportedly struggling to recover.
In a media statement dated April 15, 2024, 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.
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.
“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 Patel.
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.
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.
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 therefore denies any involvement in any robbery case filed in Eldoret and moved to Nakuru. 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.
Patel said the spread of false information and unsubstantiated accusations against it caused unnecessary attention in the Ugandan agricultural sector and harmed the company’s reputation.
