A Nairobi court has withdrawn the case against the director of Nyama Mama restaurant, who had been accused of obtaining a Kes.520 million loan using fraudulent security.
Jayesh Shanghavi and his wife Ninaa Shanghavi stood accused of inducing Victoria Commercial Bank Limited, between December 10, 2018, and November 2020 in Nairobi, to execute a first legal charge over Apartment Number B2 with the intention to defraud.
As directors of Good Earth Group, the two allegedly initiated borrowing from Victoria Bank in 2015 and continued acquiring loans from the institution until November 2020.
Victoria Commercial Bank asserted that the couple obtained loans from them in 2018/2019 but deliberately obstructed the finalization of security arrangements.
According to court documents, the couple received a substantial sum from the bank under the assurance that “the collateral to be issued was undergoing processing and would be duly registered.”
Both individuals were granted bail of Kes. 400,000 each pending further legal proceedings.
The Directorate of Public Prosecutions requested the withdrawal, citing that resolving the matter through civil proceedings would be more suitable than pursuing criminal charges.
