The directors of The Good Earth Group Limited (TGEG), the proprietors behind the popular Nyama Mama restaurant chain, have filed a petition at the High Court seeking Sh 2 billion in compensation for what they term as malicious prosecution.
Jayesh Shanghavi and Nina Shanghavi are suing Victoria Commercial Bank (VCB) and its directors for general, aggravated, and exemplary damages allegedly suffered as a result of what they describe as wrongful and malicious criminal proceedings.
Speaking to the press at the Milimani Law Courts shortly after filing the petition before Justice Fridah Mugambi, the couple through their lawyers Danstan Omari and Martina Swiga recounted the emotional distress, reputational harm, and financial loss they endured due to the prosecution.
“The ordeal not only disrupted the business and livelihoods of our clients, but also infringed on their constitutional rights,” Omari stated during the briefing.
The dispute stems from a commercial loan extended to TGEG by VCB during the COVID-19 pandemic. The Shanghavis claim that despite the financial strain caused by the pandemic, they did not default but instead entered into negotiations with the bank seeking to restructure their loan.
However, the couple alleges that VCB rejected all genuine proposals and resorted to harassment and coercion by initiating criminal proceedings. In 2021, they were charged in a criminal case before the Milimani Magistrate’s Court, a matter they maintain was purely civil and commercial in nature.
“The bank opted for a path of intimidation rather than resolution,” said their lawyer, Omari. “They were subjected to malicious prosecution despite efforts to engage in good faith.”
The Shanghavis further claimed that the bond terms imposed by the court were excessive and punitive.
“We were each ordered to pay a cash bail of Sh 5 million, an amount that ignored our clean criminal records and personal circumstances,” read part of the affidavit.
Nina Shanghavi, 61, also detailed a harrowing account of medical negligence after she was allegedly denied access to her private physicians and forcibly taken to Kenyatta National Hospital without her medical records.
“She was subjected to the wrong medication, denied a vegetarian diet required for both medical and cultural reasons, and her family was barred from accessing or caring for her,” said defense counsel Martina Swiga. “What she endured was not only physically distressing but also psychologically traumatic.”
Lawyers also noted that Nina had been scheduled to travel abroad for urgent treatment related to a serious health condition. Despite presenting medical documents, the court declined to release her passport.
The couple had been charged with fraudulently obtaining a Sh 520 million loan using alleged forged securities.
However, in 2024, the Director of Public Prosecutions (DPP) applied to withdraw the charges, stating that the dispute was civil in nature and not suitable for criminal prosecution.
Milimani Principal Magistrate Wandia Nyamu subsequently marked the case as withdrawn.
