Bank of Baroda Asked to Pay Gujarati Business Tycoon Over ₹200 Crore in High Court Battle in Kenya

Fresh from its massive ₹5,700 crore out-of-court settlement in the global NMC Health dispute, Bank of Baroda is staring down another high-stakes financial crisis—this time in East Africa. The High Court of Kenya at Nairobi has ordered the public sector lender to pay ₹200-₹205 crore (Ksh 2.996 billion) to Infinity Industrial Park Limited, a company spearheaded by prominent Gujarati business tycoon Ashok Rupshi Shah.

The ruling marks a sharp escalation in a bitter commercial dispute centered on a sprawling industrial park project along Nairobi's Eastern By-pass.

What Sparked the Legal Tussle?

The legal confrontation stems from commercial loan facilities extended by Bank of Baroda to fund Infinity Industrial Park's multi-acre warehouse development. Under standard financing structures, the developer mortgaged the project land as security.

However, relations collapsed after severe project execution bottlenecks took hold. Infinity Industrial Park approached the court alleging that the bank breached their financing agreement by withholding critical land title documents, delaying approvals necessary for property use changes, and refusing to disburse subsequent funding phases. According to the developer, these hurdles—compounded by external economic shocks—stalled cash flows and choked project timelines.

Default Judgment and Asset Seizure

While the developer initially sought injunctions to block the bank from taking possession of the property, the legal landscape shifted when the bank failed to file its defence within court-mandated timelines.

The High Court entered a default judgment against the bank, a decision that Justice Peter Mulwa subsequently refused to set aside, citing procedural non-compliance and bank inaction. Following the withdrawal of other peripheral claims, the court formalized a judgment for special damages totaling Ksh 2.996 billion. Because the institution did not settle the liabilities voluntarily, the court's Deputy Registrar issued a formal Warrant of Attachment. Court-appointed bailiffs have been authorized to attach and publicly auction movable assets belonging to Bank of Baroda to recover the full decretal amount.

Growing International Exposure

This legal setback deals a heavy blow to the bank's international operations, following closely on its multi-jurisdictional $600 million (approx. ₹5,700 crore) settlement tied to the collapse of UAE-based healthcare giant NMC Health. With the enforcement deadline drawing closer, the bank faces intense scrutiny over its cross-border risk management and overseas legal liabilities.