Tycoon Rajni Tailor faces jail over Shs148m rent arrears

Rajini Tailor, a renowned businessman and former Buganda Kingdom minister, has been embroiled in a debt dispute with the Muljibhai Madhvani Foundation, resulting in his recent detention at Luzira Prison.
The dispute centres on unpaid rent arrears amounting to approximately Shs148 million.
According to court documents, Roliat Estate Agency, where Mr Tailor serves as director, rented a showroom in the Madhvani Foundation Building from 2018 to 2021.
During this period, the agency accumulated rent arrears of USD 31,152, approximately Shs115 million.
Despite making a partial payment of USD16,296, approximately Shs60 million, further arrears accrued, bringing the total debt to USD 44,645, approximately Shs165 million.
“Sometime in August 2021, the tenancy agreement was terminated on account of default by the defendants in paying rent. The defendants committed to pay the outstanding rental arrears, vacate the premises, renovate the rental premises and also hand over possession of the showroom to the plaintiff before August 31, 2021," court documents read in part.
The defendants acknowledged the debt and proposed a repayment plan in April 2022 but only managed to pay an additional USD 5,912, leaving an outstanding balance of USD 39,453, (approximately Shs148 million). In March 2023, a decree was issued ordering the payment of USD 39,453 and Shs12,061,750 in costs.
Tailor's counsel argued for his release, highlighting his good faith in attempting to settle the debt and substantial assets as security for the remaining balance.
However, lawyers for the Madhvani Group emphasised the importance of enforcing the original decree to uphold the legal system's integrity.
Assistant Registrar Okumu Jude Muwone considered both arguments before ruling.  
When contacted, Tailor downplayed the issue, attributing it to a simple rent dispute. "Regarding the issue, I would say it is simply a rent dispute. I promised to settle the payments, and I believe the intention was to have me detained. However, I was released after making some payments. I am committed to paying, but as you know, the COVID-19 pandemic affected everyone's finances."
The court has ordered Tailor to appear, signaling that his assets could be legally attached if he fails to meet his obligations within the agreed timeframe.
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