Court allows DPP to terminate Sh100m shares fraud case on lawyer, EPZ firm director

A director of an Export Processing Zone (EPZ) company and city lawyer Philemon Morara Apiemi, both accused of defrauding the heirs of a deceased director of shares worth Sh100 million, have been cleared by the court following the termination of the case by the Director of Public Prosecution (DPP), Renson Ingonga.

Milimani Senior Principal Magistrate Dolphina Alego terminated the case against Morara and Shahdadpuri Chanshyam Choithram on February 24, 2025, as urged by the DPP after a settlement of the dispute.

State prosecutor James Gachoka applied to withdraw the case against Morara and Choithram, saying, "The matter has been settled out of court, and a resolution has been reached."

The court allowed the DPP’s plea and freed Choithram and Morara after confirming with the complainant, Harish Suresh Lakhiani, that the matter had been resolved.

"Have you resolved this dispute?" Mr Gachoka asked Lakhiani.

"Yes, the matter has been settled. I am applying to withdraw the criminal case against the two. I am sorry and apologetic for my decision to file the case in court before ascertaining the actual facts and background of the matter."

Gachoka stated that he was not opposed to the withdrawal of the case.

He urged the magistrate to withdraw the case under Section 87(a) of the CPC.

"I have heard the prosecution and the complainant on the withdrawal of this case after a settlement has been reached. This case is hereby marked as withdrawn under Section 87(a) of the CPC. The accused are hereby freed," Ms Alego, the senior principal magistrate, ruled.

'Conspire to defraud'

Morara and Choithram were jointly accused of conspiring to defraud the heirs of Suresh Lakhiani and Narrain Choithram (both deceased) of Global Apparels Kenya (EPZ) of 250,000 shares worth Sh25 million and 75,000 shares worth Sh75 million.

They were accused of falsifying the company’s resolutions, transfer deeds, and statutory declarations to benefit Chanshyam, a fact they knew to be false.

They allegedly committed the offense between October 16, 2016, and June 13, 2018.

The prosecution also alleged that on July 12, 2018, both Choithram and Morara knowingly and fraudulently presented a forged EPZ Ltd written resolution, statutory declaration (both dated October 24, 2017), and a transfer deed dated December 5, 2016, at the Registrar of Companies in Nairobi, purporting them to be genuine documents.

The two were further accused of, with intent to defraud and without lawful authority, jointly making a statutory declaration dated October 14, 2016, purporting it to be a statutory declaration sworn by Suresh Lakhiani.

In response to the withdrawal application, the accused stated that they unequivocally forgave the complainant despite the pain and suffering caused by the ill-advised criminal complaint against them.

After terminating the case, the magistrate further ordered that their cash bails of Sh3,000,000 and Sh500,000, respectively, be refunded to the accused.

The case had been pending in court for five years.