A Nairobi court has significantly impacted businessman Jayesh Kumar Probudus Kotecha‘s efforts to evade prosecution in a Sh706.9 million fraud case, as Principal Magistrate Carolyne Mugo rejected the controversial application from the Director of Public Prosecutions (DPP) to withdraw the charges.
Magistrate Mugo criticized DPP Renson Ingonga for allegedly misusing the court process and pursuing a “hidden agenda” by attempting to dismiss the six-year-old case without consulting the complainant, Prime Bank Limited. This ruling followed the prosecution’s request to withdraw charges under Section 87(a) of the Criminal Procedure Code, made just days before a scheduled hearing in June 2025.
Kotecha, a British businessman and director of Midland Hauliers Limited, faces multiple allegations, including conspiracy to defraud Prime Bank by unlawfully transferring mortgaged vehicles. The charges arise from claims that he sold three trucks valued at the disputed amount to Super Hakika Limited while Midland Hauliers was under bank administration.
The court was informed that Midland Hauliers Limited entered administration in 2020 due to loan default, with Kotecha accused of managing the company without the administrator’s approval and failing to provide necessary information to the court-appointed receiver. Magistrate Mugo highlighted the concerning timing of the DPP’s withdrawal request, noting it occurred just two days after pre-trial proceedings had taken place with witnesses prepared to testify, emphasizing that the DPP did not notify the complainant of the intention to withdraw the case as required by law.
The magistrate emphasized that complainants have equal rights to accused persons in criminal proceedings and criticized the prosecution for treating the court as a “rubber stamp.” She rejected the DPP’s explanation that pending insolvency petitions in the High Court justified the withdrawal, pointing out that these cases were already pending when the decision to charge Kotecha was initially made.
Lawyer Elijah Mwangi, representing the bank-appointed administrator, had vigorously opposed the withdrawal application, arguing that it constituted an abuse of the court process and violated the complainant’s rights. The defense team maintained that eight witnesses were prepared to testify and that the case should proceed to its conclusion.
In her comprehensive ruling, Magistrate Mugo declared that “magistrates courts will not be used as rubber stamps by the DPP in the misapplication of the law and doing injustice to complainants in court.” She ordered that the case proceed to full trial starting October 6, 2025.
The fraud allegations against Kotecha include five counts covering conspiracy to defraud, fraudulent disposition of mortgaged goods, unauthorized management of a company under receivership, and failure to cooperate with the court-appointed administrator. The businessman has denied all charges and remains out on bond.
This case highlights growing concerns about prosecutorial conduct and the protection of victims’ rights in Kenya’s criminal justice system, with the court’s decision setting a strong precedent against arbitrary case withdrawals that bypass proper legal procedures.
