The receiver manager appointed by Prime Bank has opposed DPP's application to withdraw a Sh706.9m fraud case.
A receiver manager has opposed an 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.
However, Milimani law courts principal magistrate Carolyne Mugo reserved her decision to the DPP’s application to withdraw under Section 87(a) of the Criminal Procedure Code (CPC) the case against Mr Jayesh Kumar Prabudas Kotecha and Midland Hauliers Limited (MHL) pending a response from the accused.
Instead, Ms Mugo allowed Mr Kotecha to respond to the objection raised by the Prime Bank Limited (PBL) appointed administrator Mr Ponanigpali Venkata Ramana Rao to manage MHL to withdraw the criminal case that has been pending trial since 2019.
“This court has considered the application by the prosecution to withdraw the case under Section 87 (a) of the CPC as well as the strong opposition by counsel watching brief for the complainant (Rao),” the magistrate stated.
She observed that Mr Kotecha’s lawyer had not been served with evidence relied on by Mr Rao’s lawyer to oppose the oral application by the DPP to withdraw the fraud case on June 19 2025.
Therefore, Ms Mugo allowed a request by Mr Kotecha’s defence lawyer to be supplied with authorities (evidence) relied upon by Mr Rao’s lawyer to oppose the withdrawal of the case by the DPP to enable him to respond accordingly.
In her brief ruling, Ms Mugo directed all the parties (Rao and Kotecha) to file written submissions in answer to the DPP’s application to terminate the criminal case by July 15, 2025.
After confirming that all the parties have filed their written submissions the magistrate will set a date to render a ruling on whether to grant the DPP’s application or not.
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 has been 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, and 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 aggregate facility of Sh706.9million advanced to them by PBL with intent to defraud disposed of mortgaged goods to with three trucks-KBJ 990X, KBK 090P and KBJS 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 of the company to Mr Rao contrary to the law.
The accused has denied the charges and is out on bond.
