Claims of fake property sales at an upmarket Umhlanga ocean view apartment building complex have emerged in court papers implicating estate agents and a local lawyer.
Businessman Andrey Marimuthu has brought legal proceedings to sequestrate attorney Ahmed Amod, claiming he paid more than R10m into his trust account, which has now disappeared.
Marimuthu, who owns a popular nightspot at Ocean's Mall, says the money was to be handed over to conveyancing attorneys for the purchase of several properties at The Pearls, overlooking the Umhlanga pier.
It appears from court papers he bought the apartments for a steal, after being told by an estate agent, Shanell Sewpersad, they were “distressed sales”.
However, in opposing the application, Amod says Sewpersad and not Marimuthu was his client. Acting on the estate agent’s instructions, he had transferred the funds to her.
She had told him they were “investments and loans”.
Amod claims to have no knowledge of the property transactions. But Marimuthu said he met Amod with Sewpersad where the purchase of the properties was discussed.
He alleges the lawyer is complicit in a fraudulent scheme.
In his affidavit, Marimuthu says he made the deposits into Amod’s trust account between February and April 2024. Only R670,000 was transferred to a conveyancer. “The remainder should still be in his trust account. I have demanded the funds but he has failed to make payment,” Marimuthu said.
“It appears that I and a number of other purported purchasers were all scammed into a scheme to which the estate agents and Amod were a party. I was duped into paying these amounts. He is obliged to account to me for all monies paid. Instead, I have been fobbed off.”
He claims in early 2024 he was introduced to Sewpersad and a colleague who were “apparently in-house estate agents for resales in the Pearls development”.
He viewed the properties — which were described as distressed sales — and realised they were “a bargain”.
He bought one apartment for R2.5m, another for R2.85m and a third for R2.1m.
I was told the real agreement would be the one for the lower price and Amod would provide a guarantee for the shortfall.
He was also presented with agreements reflecting higher purchase prices (between R6m and R10.2m).
“I was told the real agreement would be the one for the lower price and Amod would provide a guarantee for the shortfall.”
He had also done other property deals with Sewpersad, again putting the money into Amod’s trust account.
He said taking into account R670,000 paid over to a conveyancer, there ought to be almost R10.4m [the three sales and other property deals] remaining in the account.
Marimuthu said he had met Amod in May at a restaurant with Sewpersad present. Amod knew about the property purchases and indicated that he was going to use a different conveyancer to speed up the transfer process.
In November, Marimuthu telephoned Amod and recorded the conversation.
Amod had fobbed him off but had not disputed the property transactions or that the money in his trust account was intended for them.
Marimuthu said that in February , “to my horror and amazement” Amod, for the first time, denied knowledge of property transactions, claiming the deposits were for “investments and loans”.
He said in a further telephone conversation, Amod wanted to meet urgently, claiming “Sewpersad had stolen enough money”.
Amod said the money was no longer in his trust account because Sewpersad had instructed him to pay it to her.
Amod had justified this by saying she was his client, and not Marimuthu.
Marimuthu said Amod had promised to respond fully with details of what happened to the funds. He never did “and his silence is deafening”.
He said it was “inescapable” that Amod was involved in a scheme with Sewpersad.
Opposing the application, Amod described it as a “contortionist version of the true event”.
He denied being involved with any “shenanigans” involving property transactions or “distressed sales” and said he was not engaged in money lending and had not extended any loans to anyone.
He said Marimuthu’s assertion he had entrusted funds to him was incorrect. The funds were entrusted by Sewpersad and he had acted in accordance with her instructions.
He said Marimuthu had failed to establish any legal basis for his claim against him.
In a replying affidavit, Marimuthu said it was not disputed he had deposited the funds and Amod had a legal obligation to retain them until he instructed otherwise.
The application was argued before Durban high court acting judge Alpha Zwane on Thursday. Judgment was reserved.
The Sunday Times posed questions to Sewpersad via WhatsApp.
While she responded that she “would love to comment” she did not do so by the stipulated deadline.
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