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Court frees Nyama Mama hotel owner on Sh450,000 cash bail
Jayesh and Ninaa Shanghavi (in a wheelchair), directors of popular Nyama Mama restaurants before a Nairobi court on December 21, 2021. PHOTO | DENNIS ONSONGO | NMG
A director of popular Nyama Mama Restaurant has been freed on cash bail after spending two nights in custody over accusations of fraudulently obtaining more than half-a-billion shillings from a local bank.
Nina Shanghavi was freed after paying cash bail of Sh450,000 as directed by Milimani senior principal magistrate Wandia Nyamu.
She was admitted to Kenyatta National Hospital under the supervision of the officer in charge of Lang’ata Women prison, awaiting the bail ruling.
The businesswoman presented herself in court on Tuesday after a warrant of arrest was issued against her.
Her lawyers Charles Njenga and Conrad Maloba dismissed claims that she had fled the country to escape arrest but said she had travelled abroad and later sought treatment over an undisclosed ailment.
Ms Shanghavi and her spouse Jayesh Shanghavi are accused of obtaining a Sh520 million loan from Victoria Commercial Bank, after failing to deliver security on debt as promised.
While freeing her on bail, the magistrate noted that the case was a commercial dispute and encouraged the bank and the two business owners to negotiate with a view of settling the matter out of court.
The charges stated that the couple and their company Good Earth (Group) Ltd induced the lender to execute a charge over an apartment in Nairobi to secure a loan of Sh520 million.
They allegedly committed the offence between December 10, 2018, and November 23, 2020.
Good Earth Ltd is the company behind Nyama Mama, Blue Door, Yao and Deli and Bakery.
Mr Shanghavi, who denied the charge earlier, is out on bail.
The prosecution and the bank had opposed her release on bail, saying she has not demonstrated goodwill even after being informed that a warrant for her arrest had been issued.
Court documents show that the duo, who are directors of Good Earth Group, which comprises various high-end restaurants and a bar in Nairobi, 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 — an apartment on a property known as Crystal Edge — was never registered.
