Mulli, FDH Bank inK4.3bn loan dispute
Mulli Holdings Limited (MBL) companies are locked in a legal battle with FDH Bank Plc over a disputed K4.3 billion loan.
The controversy centres on allegations of unfair practices and procedural irregularities in loan arrangements, particularly the use of a prime property, Blantyre East 163, as collateral for Mulli Holdings, which owns Mulli Brothers Limited, Celcom Limited, Agro Fund International Limited and Web Commercials Limited.

According to court documents, the legal tussle arose after FDH Bank moved to repossess Blantyre East 163, a property owned by Celcom Limited.
The property had initially been used to secure a K90 million loan for Mulli Brothers Limited in 2017.
“During their business relationship [with FDH], the third claimant obtained a loan facility from the defendant in the sum of K90 000 000.
“The facility was secured by a surety charge on a freehold piece of land known as Blantyre East 163 owned by the third claimant,” the court records indicate.
Over time, additional loan facilities were extended, with the total debt allegedly reaching K4.3 billion.
“These facilities were to be secured by further surety charges on the property,” reads FDH submissions in part.
The bank claims the loans were adequately secured through title deeds and resolutions consenting to use Blantyre East 163 as collateral for all subsequent facilities.
However, the companies dispute this, arguing no formal charges were registered to secure the additional loans, as required by the Registered Land Act.
Further complicating the matter is a disputed K200 million payment guarantee, which the claimants assert was never utilised, but was nonetheless included in FDH’s loan calculations.
Mulli Brothers Limited managing director Leston Mulli,questioned the accuracy of the bank’s figures.
He stated in his submission: “We requested a reconciliation of the figures, particularly the K4.3 billion, as we suspect it includes amounts such as the K200 million payment guarantee, which we never accessed.”
They also argued that Celcom Limited, the rightful owner of Blantyre East 163, never authorised its use as collateral for loans exceeding the initial K90 million facility.
A document presented by FDH was a resolution dated December 15 2020, purportedly authorising the use of Blantyre East 163 as security for additional loans.
Records show that FDH Bank tried to discharge an interlocutory injunction granted to the companies which currently restrains the bank from selling the property.
But the presiding Judge Jabber Alide rejected it through a ruling delivered on September 5 2024.
In it, Alide noted that the resolution authorising usage of the Blantyre East 163 property as security for additional loans originated from MBL Holdings Limited, not Celcom Limited, the legal owner of the property.
Alide observed: “If indeed the resolution was issued by MBL Holdings Limited, then it is a problem because they do not have title over Blantyre East 163.
“The fourth claimant, Celcom Limited, owns the property. In terms of the law, the two are separate legal entities.”
Further, the companies accuse the bank of harsh and unconscionable practices, contrary to the Loans Recovery Act.
They allege the bank applied excessive penalty interest and failed to fulfil its promise to reconcile the disputed loan figures.
They further argue that selling Blantyre East 163 would cause irreparable harm as the property houses critical telecommunications infrastructure for Celcom Limited’s operations.
The matter, according to lawyer for the four companies Michael Goba Chipeta, awaits mediation with the court yet to set the date.
FDH refused to comment on the matter.
In an email response, FDH Bank Plc’s public relations manager Lorraine Chikhula said: “Thank you for engaging us with this query.
“However, we do not comment on matters that are in court.”