AMCON, the Asset Management Corporation of Nigeria, has taken legal action against Rajesh Valecha, Chairman of Milan Industries Limited, Milan Nigeria Ltd, Milan Beverages Ltd, and four other directors of these companies. The reason? They allegedly can’t repay a debt of N42 billion.
According to AMCON, the debt, now at N41,511,758,031.14, originated from Skye Bank (now Polaris Bank) loans between 2010 and 2012 by Milan Industries Ltd and Milan Nigeria Ltd. These loans were supposedly used for building a 361-room hotel facility at 52 Kofo Abayomi Street, Victoria Island, Lagos. This hotel was formerly known as Intercontinental Hotel and is now called Lagos Continental Hotel.
AMCON, having acquired the debt from the bank, is now seeking legal action. They’re asking the court for various orders, including appointing a trustee against the assets of the directors and empowering AMCON to sell their properties, land, and chattels. Additionally, AMCON wants the court to allow them to use the investments or shares of the directors to partially or fully settle the debt.
Justice Daniel Osiagor has permitted AMCON to serve relevant court documents to Rajesh Valecha and Vikram Valecha through substituted service. Similar orders were previously made for the other three directors. Justice Osiagor is hearing three of the petitions, while Justice Yelim Bogoro is handling the other two. Both judges have issued injunctions preventing the directors from touching their assets and ordered banks to provide information about their financial status.
