Good Earth Group Directors Seek Ksh 2 Billion Compensation from Victoria Commercial Bank

The Good Earth Group Limited (TGEG) directors have filed a petition before the High Court seeking compensation amounting to Ksh 2 billion for malicious prosecution.

Jayesh Shanghavi and Nina Shanghavi, the directors of a food joint popularly known as Nyama Mama have sued Victoria Commercial Bank (VCB) and its directors to pay them a general aggravated and exemplary damages they suffered from malicious criminal prosecution.

During a media briefing at Milimani law courts shortly after the filing of the petition before Justice Fridah Mugambi, they described how their constitutional rights were infringed and the emotional distress they went through.

They are pleading with the court to consider the financial loss they went through, reputation harm, and the disruption of their business and livelihood.

The dispute arose during the adverse conditions occasioned by the COVID-19 Pandemic and its aftermath, (TGEG) experienced financial hardship leading to a commercial debt with VCB Limited had financed them with a loan,

“The bank filed a criminal matter in the year 2021 before the Milimani magistrate court where we were charged with criminal offence and the matter in nature was purely civil and commercial,” Jayesh stated.

They stated that in their affidavit, in good faith and without defaulting on their financial duties, they had entered into a negotiation with the bank where they were seeking to restructure the loan obligations or come up with an amicable settlement,

“Despite the director’s action for negotiation, the bank rejected all genuine proposals and instead embarked on a campaign of harassment, coercion and malicious prosecution against the couple,” their defense lawyer Danstan Omari said.

Despite having no prior criminal record, the court subjected them to high and unreasonable bond terms that were punitive.

“At the initial arraignment, the court imposed a cash bail of Ksh 5 million each which was wholly disproportionate and ignored our personal circumstances and clean records.” Read part of the affidavit.

Nina, 61, states that she was denied to access private physicians and was forcibly taken to Kenyatta National Hospital without any of her medical records, history, or proper triage, which is contrary to medical ethics and her rights as a patient,

“In Kenyatta National Hospital our client was subjected to medical negligence, by being prescribed to wrong medication, being denied a vegetarian diet she medically and culturally require and and the family was denied to access or take care of her,” Matina Swiga a defense lawyer said.

The lawyers claim that the medical distress she endured was not only physically torturous but also psychologically traumatic, given her age and the abrupt hostile nature of the state’s actions.

The lawyer added that Nina was scheduled to travel abroad for urgent treatment concerning a serious health condition that was diagnosed by a team of specialists, where the court rejected to consider the plea despite the production of the medical documents and proceeded to detain her passport.

Director Jayesh Shanghavi and his wife Nina Shanghavi had been charged with obtaining a Ksh 520 million loan using alleged fraudulent security.

In 2024, the DPP made an application to withdraw the case against the businessman Shanghai and his wife noting that the criminal complaint would be best resolved in civil proceedings rather than criminal proceedings.

Milimani principal magistrate Wandia Nyamu marked the case as withdrawn.