V
ivek Shah is seeking a U.S. District Court ruling to enforce the outcome of an arbitration dispute with Nitya Capital co-founder Swapnil Agarwal. The "final award" confirms Shah's rights as an equal governing partner, including veto power over major business decisions and access to Nitya's records.

    Shah claims Agarwal breached their agreement by withholding information about transactions, including a $700 million refinancing deal with Citibank. This high-stakes loan was secured last month and appears to have exacerbated the ongoing feud between the co-founders.

    The arbitration process began in October 2023, culminating in a final hearing in April. The resulting award granted Shah significant ownership stakes in Nitya Capital, KPM Property Management, and KPM Global. However, Agarwal allegedly failed to provide requested information about ongoing business transactions, including the $700 million refinancing deal.

    The loan, which covered 18 multifamily properties across several states, was a crucial lifeline for Nitya Capital, which has faced numerous lawsuits and financial struggles. The company's inability to pay off a $356 million CMBS loan last year led to special servicing, while a separate lawsuit from the City of Mesquite highlighted concerns over property conditions.

    The Texas multifamily market's oversupply and rising interest rates have further exacerbated Nitya Capital's challenges, forcing operators to offer concessions at their properties. Shah is now seeking court confirmation of the arbitration award and an order requiring Agarwal to comply with its terms.