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Three United Millers Directors Charged With Sh79.4M Fraud

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Three United Millers Directors

United Millers Directors in court over fraud

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Three directors of a Kisumu-based milling company were charged with obtaining over Sh 79.4 million by false pretences.

Sunil Narshi Shah, Kamal Narshi Punja Shah and Magnesh Kumar Verma who are directors of United Millers Limited who appear before Milimani chief magistrate Francis Andayi denied seven counts of defrauding businessman B N Kotecha & Sons Limited Sh79,471,000 in a sugar deal.

However, the magistrate ordered each of them to be released on Sh 1 million bond or cash bail of Sh 400,000 pending the mention for pre-trial on May 24.

Andayi also directed them not to leave the jurisdiction of the court without court permission. The accused were further ordered to deposit their travelling documents with the court until further notice.

Senior state counsel Angela Fuchaka informed the court they are not opposed to accused persons being released on bond.

Earlier Andayi had declined to issue a warrant of arrest against the three as requested by senior State prosecutor Everlyn Onunga, who informed the court that the plea against the millers was supposed to have been taken June 3, 2020.

“I urge this court to issue a warrant of arrest against the accused who were granted a police bond last year, “ Onunga had said.

Onunga had told the court that Sunil, Kamal and Magnesh were earlier freed on a Sh70,000 police bond by the police boss at Muthaiga station.

Onunga said that although a defence lawyer informed the court that the directors have been advised to stay in isolation having interacted with a Covid-19 victim “no medical records have been availed in court to support the claim.”

The defence lawyer said he will keep the court posted on the status of his clients and promised to produce relevant information to the court and prosecution.

He also ordered the defence lawyer to produce medical records of the suspects.

Besides the three directors, a general manager of United Millers Limited Henry Munywoki Kavita has already pleaded not guilty to the charges and was released on Sh 400,000 cash bail.

Kavita and the three directors were accused that on April 2, 2015 at an unknown place within Kenya jointly conspired with intent to defraud B N Kotecha & Sons Sh79.4 million.

The four allegedly pretended they had lost business as United Millers Limited to their clients by failure to supply sugar.

The suspects were also charged with defeating the course of justice by filing a case at the High Court in Kisumu allegedly using falsified documents.

In the case, United Millers Limited sued B N Kotecha & Sons Limited, Hemal Kishor Kotecha and Harshil Kishore Kotecha.

Kavita is separately charged with forging a local purchase order for Alysam Stores on April 15, 2015 purporting to be a genuine LPO.