The director of famous food restaurant Nyama Mama has been charged with fraudulently securing an Sh520 million loan.
Jayesh Shanghavi and his wife Ninaa Shanghavi are the directors of Good Earth Ltd. Ninaa Shanghavi was missing from the court and a warrant of arrest was issued for her.
After the prosecution filed an application with the court, principal magistrate Wandia Nyamu issued the arrest warrant last Friday.
Nyama Mama, Blue Door, Yao and Deli and Bakery are all owned by Good Earth Ltd.
They allegedly persuaded Victoria Commercial Bank Limited to sign a first legal charge over apartment Number B2 on various days between December 10, 2018, and November 2020 in Nairobi with the aim to deceive, together with others not before the court.
The condo, dubbed Crystal Edge Apartment, was built on land in Nairobi to secure a sum of Sh520 million as valuable security.
According to police records, the pair, who are directors of Good Earth Group, entered into a credit agreement with Victoria Bank in 2015 and continued to borrow from the bank until November 2020.
Submissions by the Victoria Commercial Bank stated that the two got loans from them in 2018/2019 but purposefully avoided perfecting security.
According to court documents, the couple received a large sum of money from the financial institution on the condition that “the collateral to be issued was being processed and would be registered accordingly.”
It alleges that despite several assurances, the security was never finished and was never given to the bank as expected for registration after the privileges were extended to the business.
He asked for liberal release terms, stating that the accused will comply with all court orders and will appear in court whenever necessary.
Magistrate Nyamu granted him bail, stating that an accused person is presumed innocent until proven guilty.
She ordered him to post Sh400,000 cash bail or a Sh1 million alternative bond.
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