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Court dismisses DPP plea to terminate Sh706m fraud case against leading transporter
The Director of Public Prosecutions Renson Ingonga.
A Nairobi court has dismissed an application by the Director of Public Prosecutions (DPP) Renson Ingonga to terminate a Sh706.9 million fraud case against a company director charged with disposing of properties used as a collateral to obtain a loan from the bank.
Rejecting the plea to quash the case against Jayesh Kumar Probudus Kotecha and Midland Hauliers Limited (MHL), Milimani Law Courts Principal Magistrate Carolyne Mugo said the DPP was abusing the court process, given that the case has been pending in court for the last six years and the complainant has been ready to testify.
Ms Mugo noted that the DPP introduced the issue of withdrawing the case against Kotecha when it came up for hearing in June 2025.
Kumar Kotecha at the Milimani Law Courts on July 29, 2025.
"This court takes judicial notice that the DPP did not inform the complainant of the intention to withdraw the case against the accused persons as provided for under the law," ruled Ms Mugo.
She went on to say the DPP had a hidden agenda by failing to inform the complainant of his intention to terminate the criminal case when eight witnesses were ready to testify.
"Magistrates courts will not be used as rubber stamps by the DPP in the misapplication of the law and doing injustice to complainants in court," stated Mugo.
She said the law empowers magistrates to interrogate the actions of the DPP to ensure justice is done to all players.
"The complainant has equal rights just as an accused person. In the present case the Prime Bank Limited (PBL) appointed administrator overseeing the operations of Midland Hauliers input before termination of the case was important and it was not sought by the DPP," ruled Ms Mugo.
Pending petitions
The court rejected the explanation given by the DPP that there were two pending insolvency petitions in the High Court on Midland, saying " when a decision to charge Kotecha was made, the cases were still pending in court."
She dismissed the DPP's application saying it lacks merit.
"I have considered the DPPs application to withdraw the case under Section 87 (a) of the Criminal Procedure Code and find that it is devoid of merit and an abuse of the court process. I dismiss it and direct the case to proceed for full trial from October 6, 2025," ordered Ms Mugo.
Lawyer Elijah Mwangi for the receiver manager appointed by Prime Bank to oversee business activities for MHL had opposed the application by the DPP to withdraw the case under Section 87 (a) of the Criminal Procedure Code.
Mr Mwangi, for the administrator Ponaningpali Venkanta Ramana Rao, also said the rights of the complainant were not considered by DPP when they sought to terminate the case.
Mwangi opposed the application by Director of Public Prosecutions (DPP) Renson Ingonga to withdraw a Sh706.9 million fraud case against a company director accused of disposing of properties used as collateral for the facility.
Mr Kotecha and MHL are charged with conspiracy to defraud Prime Bank Limited (PBL) Sh706,989,273 by transferring mortgaged goods to Super Hakika Limited (SHL) without informing the administrator (MHL) Mr Ponanigpali Venkata Ramana Rao.
Mr Kotecha, a director of MHL is alleged to have conspired jointly with others not in court to defraud Prime Bank the colossal sum by transferring three trucks - KBJ 990X, KBK 090P and KBJ 990S from the transporter (Midland) to SHL without notifying Mr Rao.
Midland Hauliers Limited was placed under the administration of Mr Rao since 2020 after failing to pay a loan advanced to it by the bank.
Mr Rao’s lawyer Elijah Mwangi protested the move by the DPP to withdraw the case, saying, “It is an abuse of the court process.”
Mr Kotecha and MHL are facing five counts of conspiracy to defraud, fraudulent disposition of mortgaged goods, performing management functions in a company under receivership (administration) without the consent of Mr Rao, the bank-appointed receiver manager.
Mr Kotecha is further charged with failing to submit a statement of the company affairs (MHL) to Mr Rao.
Further, Mr Kotecha is indicted for failing to give the appointed administrator (receiver manager) Mr Rao information contrary to Section 679(3) (a) as read with Section 679(5) of the Insolvency Act No.18 of 2015.
Mr Kotecha has denied that on April 29, 2019 being a director of MHL, a mortgagor of an aggregate facility of Sh706.9million advanced to them by PBL with intent to defraud disposed of the mortgaged goods to switch three trucks from MHL to SHL.
Further, the director (Kotecha) was charged with performing a management duty without consent from the CBK-appointed administrator to oversee the operations of MHL by transferring the three mortgaged motor vehicles to SHL.
Kotecha has also been accused of failing to furnish Mr Rao with a statement of affairs at MHL and withholding information about the company from Mr Rao contrary to the law.
The accused has denied the charges and is out on bond.
