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Tainted Victoria Commercial bank seeks Sh520 million from Nyama Mama – Kenyan Business Feed

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Victoria Commercial Bank CEO Yogesh Pattni. The bank has been mentioned as a conduit for money laundering for the Akasha family. Akasha family is known for drug dealing. Two members of the Akasha family, Baktash and Ibrahim were, in 2017, arrested and extradited to the US where they were tired and found guilty of drug trafficking.

Victoria Commercial Bank is seeking Sh520 million from Nyama Mama restaurant.

The proprietor Ninaa Shanghavi is accused of obtaining the loan without offering security and it is alleged that she has fled the country. An arrest warrant has been issued against her.

Principal Margistrate Zainab Abdul on Wednesday declined to lift the warrant of arrest even a Ms Ninaa’s lawyer argued that she had travelle for important business.

The lender had applied to be allowed to put an advertisement in the newspaper, announcing that she was missing but the court directed her to present herself in court within two weeks, failure to which the bank would be free to publicise her missing.

The two, who are directors of Good Earth (Group) Ltd, are accused of inducing Victoria Commercial Bank to execute a charge over an apartment in Nairobi to obtain a loan of Sh520 million, with intent to defraud. Good Earth Ltd is the company behind Nyama Mama, Blue Door, Yao and Deli and Bakery.

The charges stated that they committed the offence on diverse dates between December 10, 2018, and November 2020. Mr Shanghavi was released on bail and the court issued a warrant for the arrest of his spouse.

Yesterday, the couple’s lawyer informed the court that she had left the country by the time Mr Shanghavi was picked by police officers. He pleaded to be allowed to present herself once she gets back to the country.

It is such kind of business that Victoria Commercial Bank engages in; shady businesses such as aiding drug dealers, small and light weapons traders and now giving money to ‘businessmen’ without security’. It is all coming to the fore.

Editor

The prosecution and the bank, however, opposed the application saying she is aware of the charges but chose not to come to court.

Kanji Damji Pattni, Founder Victoria Bank. Which bank releases loan proceeds before the security has been perfected?

The lender said the warrant of arrest should remain in force and the investigation officer should be summoned to explain efforts he has made to arrest her.

In a short ruling, the court rejected the application to lift the warrant but gave her two weeks to present herself in court “without embarrassing her”.

Court documents show that the duo, who are directors of Good Earth Group Limited, which comprises of various high-end restaurants and a bar in Nairobi County obtained the amount on the premises that “the collateral to be issued was being processed and would be registered accordingly”.

But even after the loans were extended to the business, the security was never registered.

The case will be mentioned on December 21.


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]


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