A Mombasa businessman has sued Central Bank for putting Imperial Bank on receivership without consultation.
Ashok Doshi and his wife Amit want the receivership declared illegal and their Sh1 billion held by the bank repaid.
The duo had jointly deposited Sh1 billion in a fixed account which was to mature in December 2015. The bank was placed under receivership on October 13 that year.
Doshi said the CBK unlawfully took over the functions of the bank and handed over its assets and liabilities to the Kenya Deposit Insurance Corporation (KDIC).
He also argued that the regulator colluded to cover the fraud executed by the directors of Imperial Bank for a period of 13 years. It was said that an internal fraud scheme had occasioned the move.
Doshi filed the application before judge Patrick Otieno. He argued that the court has jurisdiction to intervene before and after an institution is placed under receivership.