Shumuk Investments limited is threatening to evict Bonny Katatumba from Diplomat Hotel in Muyenga for refusing to vacate it after selling it off. Mukesh Shukla, director Shumuk Investments claims that he bought off Diplomat Hotel from Katatumba in 2008.
He however says that since selling off the Hotel to his company, Katatumba continues operating it illegally. Dan Wandera, the head of the legal team of Shumuk Investments says that Katatumba has been occupying the hotel illegally for the past 18 months.
Wandera says that the failure by Katatumba to hand over the hotel to his boss have cost them shillings 960 million. He now says that they have resolved to legally start the process of evicting Katatumba from the hotel.
According to a sale agreement, seen by Uganda Radio Network, Katatumba sold out his hotel to Shumuk Investments limited at US $ 630,000. Shumuk investments paid him US $ 110,000 in cash while US $ 420,000 was retained by Crane Bank to pay off his creditors.
Katatumba sold signed off the transfer forms to Shukla. But yesterday, Katatumba told URN that he only sold off Katatumba suites on plot 2 Colville Street to Shumuk Investments limited. He accuses Shukla of failing to complete payment for the transaction saying that he has started a process of repossessing his property.
Katatumba also describes Shukla as a conman who forged documents and signatures to grab his Diplomat hotel, a property he has not planned to sale. He also rejects claims that he is supposed to pay rent for using the hotel, insisting that it legally belongs to him.
