A Nairobi court has withdrawn a Sh520 million fraud case against a director of popular food joint popularly known as Nyama Mama.
Director Jayesh Shanghavi had been charged with obtaining a Sh520 million loan using a fake security.
The DPP made an application to withdraw the case against Shanghavi and his wife noting that the criminal complaint would be best resolved through civil rather than criminal proceedings.
Milimani Principal Magistrate Wandia Nyamu marked the case as withdrawn.
Shanghavi is said to be the director of The Good Earth Group Ltd (TGEG) alongside his wife Nina Shanghavi. They were charged in 2021 but they denied the charges.TGEG Ltd is the company behind Nyama Mama, Blue Door, Yao and Deli and Bakery.
Intent to defraud
The two were charged that on diverse 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 (VCB) Limited to execute a
It was alleged the couple, who were directors of The Good Earth Group, entered into an agreement with Victoria Bank and began borrowing money since 2015 and continued to acquire more loans from the bank until November 2020. Victoria Commercial Bank said that the two obtained loans from them in 2018/2019 but deliberately prevented perfection of security.
According to court documents, the duo got a colossal amount from the financial institution on the premises that “the collateral to be issued was being processed and would be registered accordingly”.
They were out on cash bail of Sh400,000 each.
