A Nairobi court has withdrawn a Sh520 million fraud case against a director of popular food joint Nyama Mama.
Director Jayesh Shanghavi had been charged with obtaining a Sh520 million loan using alleged fraudulent security.
The DPP made an application to withdraw the case against the businessman Shanghavi and his wife noting that the criminal complaint would be best resolved in civil proceedings rather than criminal proceedings.
Milimani principal magistrate Wandia Nyamu marked the case as withdrawn.
Shanghavi is said to be the director of Good Earth Ltd alongside his wife Ninaa Shanghavi.
They were charged in 2021 during which they denied the charges.
Good Earth Ltd is the company behind Nyama Mama, Blue Door, Yao and Deli and Bakery.
The two alleged that on dates between December 10, 2018, and November 2020 in Nairobi with intent to defraud, jointly with others not before the court, they induced Victoria Commercial Bank Limited to execute a first legal charge over apartment Number B2.
The apartment is erected on land in Nairobi, namely Crystal Edge Apartment, to secure the amount of Sh520 million as a valuable security.
Police records said that the couple, who are directors of Good Earth Group, entered into an agreement with Victoria Bank and began borrowing since 2015 and continued to acquire more loans from the bank up until November 2020.
Victoria Commercial Bank had said that the two obtained loans from them in 2018/2019 but deliberately prevented perfection of security.
Through lawyers Edwin Saluny and Eric Kaburu, Shanghavi had told the court that he is a Tanzanian who operates his businesses in Kenya.
