Big Win to Heritage flowers limited Director charged in alleged Ksh 110M theft as the Kenya DPP files a notice to withdraw the said case saying the case should be handled in a civil court and not a criminal court.
The director,Shailesh Kumar Rai and his wife Ranjeta Pandey Rai had been charged in Milimani Criminal Case E604 of 2023 alongside Isaac Ikua Kihara, Chris Oyunge Ontita, and Rosalia Bloom Ltd.
They were accused of stealing Ksh110 million from Heritage Flowers and laundering the money through Rosalia Bloom, a marketing company linked to Mrs. Ranjeeta.
The high-profile criminal case against the flower company director and his wife faces withdrawal after the DPP review that indicates that the charges of theft and money laundering were improperly filed and ought to be settled in Civil Court.
The accused director has always maintained that the dispute arose from a shareholder dispute, not criminal wrongdoing.
He also maintains that the alleged “proceeds of crime” were legitimate flower sales revenues, remitted by overseas buyers through Rosalia Bloom Ltd a marketing company associated with Mrs. Ranjeeta Rosalia Bloom had executed a marketing agreement and a trust deed with Heritage Flowers, establishing a lawful framework for handling funds.
It is his claim that there was no breach of trust: Rosalia Bloom faithfully remitted sales proceeds to Heritage Flowers until the onset of the disputed charges.
According to the Director, Heritage Flowers was founded by Mr. Shailesh Rai after a distinguished career in horticulture and floriculture farming with reputable firms.
To grow the business, he invited Mr. Riyaz Punjani to join as investors. Later Riyaz transferred his 25% to Seraj karmali MD of agrichem afric ltd.
He proceeds to say that Heritage sought financing from Bank of India, Kenya, however, Mr. Shiraz resigned as both a shareholder and director—avoiding the need to provide personal security for the loan, unlike Mr. Shailesh and Mr. Riyaz, who remained guarantors. Despite this exit, Shiraz later resurfaced after the company began thriving.
He also says that at one point, Mr. Riyaz allegedly attempted to re-transfer a 25 percent stake back to Shiraz without board approval, a move that failed.
The director submits that before tensions escalated, Shailesh and Ranjeeta had sought to formalize in governance by asking Riyaz to sign a shareholders’ agreement that would protect everyone’s rights, safeguard Shailesh’s position as Managing Director, and prevent unilateral decision-making.
He however says that Riyaz refused. With Heritage performing strongly, Riyaz and Shiraz instead began maneuvering to wrest control of the company.
The director says that the conflict deepened when Riyaz offered, through a formal letter, to resign and liquidate his shares.
Further, the director said even while pursuing civil proceedings, Riyaz and Shiraz also launched multiple criminal suits against the couple.
Meanwhile, disputes over control intensified. Riyaz allegedly began refusing to sign company cheques, forcing Heritage to obtain court orders compelling him to authorize expenses.
He unilaterally slashed Managing Director Shailesh’s salary by 50 percent, at times blocking his pay altogether, while also withholding wages from staff.
The Bank of India began rejecting and returning payments from overseas flower buyers, cutting off Heritage’s income stream.
Soon after, the bank recalled its loan. This sequence of events left wealthy Riyaz and Shiraz with the upper hand, as Shailesh the guarantor whose only matrimonial home secured the loan—was left cash-strapped and unable to meet obligations.
His salary has now remained unpaid for nearly two years, while suppliers and workers also go unpaid.
Allegedly, the final blow came when Riyaz procured the Bank of India to liquidate Heritage’s fixed deposit account funds critical for operations leaving the company without money for salaries or inputs.
According to the director, in applying to withdraw the charges, the DPP emphasized a vital principle: Kenya’s criminal justice system cannot be weaponized to settle shareholder disputes, pursue vendettas, or engineer corporate takeovers. Such disputes belong in civil forums such as litigation, arbitration, or mediation.
Should the criminal proceedings be terminated, Shailesh and Ranjeeta hope they can finally secure justice and realize the true value of their investment in Heritage Flowers. Their personal exposure remains immense: the company’s bank loans were secured by their guarantees and their only matrimonial home.
The Court’s determination of the ongoing commercial case will decide not just the company’s future, but also the preservation of their family’s livelihood.
The director says that Mr. Riyaz transferred his powers of attorney to Mr. Salman Karmali, the brother of Mr. Shiraz and his long-serving finance manager despite having no prior experience in floriculture, Salman positioned himself as a “saviour,” incited workers against Managing Director Shailesh, and assumed control of Heritage Flowers.
Mr. Shailesh has accused the Bank of India of colluding with Riyaz to facilitate this maneuver, enabling Shiraz and Riyaz to capture the company through their trusted relative and aide.
