Tycoon Mohan Galot who made a name in the cloth-making, alcohol, and real estate business has passed on.
The billionaire, the face of Galot Industries run successful Manchester Outfitters Limited later known as King Woolen Mills, died in London on June 18, while undergoing treatment.
The family announced that the 80-year-old businessman would be cremated in the United Kingdom on Tuesday.
Mr Galot has had a long-running battle with his nephews over the control and management of the lucrative companies under Galot Industries.
A bench of three judges last year brought to an end the dispute, which was filed in 2007, saying the removal of some directors of the company was procedural, as the businessman had the powers to appoint or remove any director as the governing director of the company.
The tycoon was fighting with his nephews Pravin, Rajesh, and Ganeshlal, who had accused him of interfering with the directorship of the companies and kicking them out of the company illegally.
The cloth-making firm was established in 1954 before it ventured into real estate, alcohol, and distillery.
The firm was established by Lachman Pusharam Galot (deceased) as a sole proprietorship of a garment production and distribution firm.
Still, in court, a 33-year-old dispute between Galot’s firm and Standard Chartered Bank is pending at the Supreme Court. The court was informed that King Woolen Mills Ltd, which was initially known as Manchester Outfitters Ltd, borrowed a loan of 1,300,000 Deutsche Marks and 1,050,000 Swiss Francs in 1982 and charged some property belonging to Galot Industries Ltd.
In yet another case, Mr Galot was engaged in a dispute with real estate developer Edermann Properties Limited over the alleged disposal of waste to Athi River by the alcohol maker.
Erdermann Properties had developed various multi-billion projects including Great Wall Gardens Housing Development Phase 1 and 2 in Machakos County.
The founder later converted it into a 50/50 partnership between him and his son Mohan and then employed other sons- Lalchand Pusharam Galot, Ganeshlal Pusharam Galot and Sohanlal Pusharam Galot.
Pusharam died on November 12, 1973, and left a Will, in which he bequeathed his four sons a quarter of his 50 percent interest in the partnership.
Galot testified that his shares increased to 62 percent while each of his brothers held 12.5 percent in the business.
The nephews moved to court after they were removed from the directorship of the firms on March 24, 3007.
"He (Mohan) had the power to determine, define, limit or restrict their (directors) powers and at any time convene a general meeting of shareholders or directors," Justices Lilian Mutende, Chacha Mwita and Mugure Thande said in the judgment last year.
Pravin, a former managing director testified that there was no board resolution removing him from the office he had held for 31 years.
Mr Galot said that he invited his nephews to join the family enterprises as directors but kicked them out when they allegedly registered parallel companies in a bid to take over the businesses.
The judges said the removal of the directors of MOL was done in accordance with Article 10, which gave Mr Galot such powers.
Other than his nephews, the tycoon had run-ins with the Kenya Revenue Authority over allegations of tax evasion involving his firm London Distillers (K) Limited.
He was charged in 2021 as KRA accused him of evading taxes, including excise duty on locally manufactured spirits, VAT, and corporate taxes, amounting to Sh1.4 billion.
Mr Galot denied a total of 18 counts of omitting from tax returns production volumes and sales amounts which ought to have been included contrary to sections of the Tax Procedures Act, and failure to pay taxes of Sh1.4 billion.
Still, in court, a 33-year-old dispute between Galot’s firm and Standard Chartered Bank is pending at the Supreme Court.
The court was informed that King Woolen Mills Ltd, which was initially known as Manchester Outfitters Ltd, borrowed a loan of 1,300,000 Deutsche Marks and 1,050,000 Swiss Francs in 1982 and charged some property belonging to Galot Industries Ltd.
In yet another case, Mr Galot was engaged in a dispute with real estate developer Edermann Properties Limited over the alleged disposal of waste to Athi River by the alcohol maker.
Erdermann Properties had developed various multi-billion projects including Great Wall Gardens Housing Development Phase 1 and 2 in Machakos County.
