A Nairobi court has withdrawn the case against the director of the popular food joint Nyama Mama, who had been charged with obtaining a Ksh.520 million loan using allegedly fraudulent security.
The decision followed an application by the Directorate of Public Prosecutions, which argued that the matter would be better resolved through civil proceedings rather than criminal ones.
Jayesh Shanghavi and his wife Ninaa Shanghavi had been accused of defrauding Victoria Commercial Bank Limited by inducing the bank to execute a first legal charge over apartment Number B2 between December 10, 2018, and November 2020.
The couple, directors of Good Earth Group, allegedly entered into an agreement with the bank and began borrowing in 2015, continuing to acquire more loans until November 2020.
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Victoria Commercial Bank claimed that the Shanghavis obtained loans in 2018 and 2019 but deliberately prevented the perfection of security. According to court documents, the couple received a significant amount from the bank under the premise that "the collateral to be issued was being processed and would be registered accordingly."
The Shanghavis had been released on a cash bail of Ksh.400,000 each.
