Nyama Mama restaurant owner in trouble over loan repayment

By , K24 Digital
On Sun, 28 Nov, 2021 00:26 | 2 mins read
Jayesh Umedlal Shanghavi at Milimani Law Courts, Nairobi.PHOTO/SHEILA MUTUA

58-year-old Jayesh Umedlal Shanghavi has been charged with fraud by a Nairobi court alongside his wife.

According to court documents, Jayesh is believed to be the owner of various restaurants, bars and shopping malls in Nairobi namely Mr Yao, Blue Door Bar and Nyama Mama.

“Jayesh Umedlal Shanghavi, you are charged that on diverse dates between December 10 2018 and November 2020 in Nairobi within Nairobi City County by false pretenses and with intent to defraud, jointly with others not before court you induced Victoria Commercial Bank Limited to execute a first legal charge over apartment Number B2 erected on Land in Nairobi namely Crystal Edge Apartment  to secure the amount of Ksh520,000,000 as a valuable security,” the charge sheet read in part.

The second accused who did not appear in court was issued with a warrant of arrest by Principal  Magistrate after the prosecution made the application before court.

According to court documents, the two directors of the Good Earth Group limited Mr. Jayesh and Nina who are the accused before court entered into an agreement with the bank and began borrowing since 2015 and continued to advance more loan from the bank up to November 2020.

The securities which were being provided by the two to the bank varied from type and value which included properties owned by their company, bank deposits from their alien accounts among others but did not own any of the premises they operated business from.

They have been operating their business from leased commercial premises  within Nairobi county according to court documents. 

Through his lawyers Edwin Saluny and Eric Kaburu, the 58-year-old told the court that the accused is a Tanzanian but operating his businesses in Kenya.

They pleaded for lenient cash bail saying the accused will adhere to court rules and appear in court whenever required to do so.

The magistrate granted him a cash bail of Ksh400,000 with an alternative bond of Ksh1M saying that she has considered the fact that the accused is presumed innocent until proven guilty. 

 The matter has been scheduled for a mention on December 8, 2021 before the trial court.