Businessman’s Fate Hangs on a Cliff As Lawyers Seek Full Trial in His Sh706M Fraud Case

A legal battle over one of Kenya’s largest fraud cases reaches a crescendo as the prosecution’s attempt to withdraw charges faces fierce opposition

The fate of businessman Jayesh Kumar Prabhudas Kotecha hangs in the balance as the Kenyan judiciary prepares to deliver a watershed ruling on July 29, 2025, that could either end his legal nightmare or thrust him deeper into the criminal justice system.

At the center of this high-stakes legal drama is a staggering Sh706 million fraud case that has captured public attention and exposed the complex intersection between criminal law and corporate insolvency proceedings in Kenya.

Kotecha, alongside his company Midland Haulers Limited, stands accused of orchestrating a sophisticated fraud scheme that allegedly defrauded Prime Bank Limited of Sh706,989,273.

The charges paint a picture of corporate malfeasance involving the transfer of mortgaged goods to Super Hakika Limited without proper authorization from the court-appointed administrator.

The businessman faces five distinct charges that read like a corporate crime thriller: attempted fraud, mishandling mortgaged property, unlawful operation of a company under administration, and failure to cooperate with a court-appointed administrator.

Each charge carries significant penalties that could fundamentally alter the trajectory of his business empire.

In an unexpected turn of events that has sent shockwaves through legal circles, the Office of the Director of Public Prosecutions (ODPP) moved in June 2025 to withdraw the case.

The prosecution’s justification centers on ongoing insolvency proceedings – specifically Insolvency Petitions E012 of 2019 and E008 of 2019 – before the High Court.

The ODPP’s position represents a calculated legal strategy.

They argue that the significant overlap between the civil insolvency proceedings and the criminal trial creates a procedural quagmire that could constitute abuse of court process.

By invoking Article 157(2) of the Constitution, which grants the ODPP discretionary powers to discontinue proceedings, the prosecution appears to be seeking a clean exit from what has become a legally complex case.

However, this withdrawal attempt has not gone unchallenged.

The move has been met with fierce resistance from the complainant’s legal team, who view it as a betrayal of justice and victims’ rights.

The complainant’s lawyer has launched a scathing attack on the prosecution’s withdrawal bid, accusing the ODPP of overstepping its constitutional mandate and obstructing the course of justice.

In a particularly damning critique, the lawyer dismissed the prosecution’s reference to insolvency cases as “irrelevant,” arguing that the administrator who serves as the complainant was the original whistleblower who raised the alarm about the alleged fraud.

The legal team’s frustration is palpable as they point to a disturbing pattern.

Similar arguments previously led to the withdrawal of charges against a co-accused in January 2024, despite the case having progressed to the pre-trial stage with witnesses prepared to testify.

“We had everything in place to proceed. Now the prosecution wants to abandon the case without even informing the complainant,” the lawyer argued, characterizing it as a clear violation of victims’ rights.

This legal battle extends beyond Kenya’s borders, adding layers of complexity to an already intricate case.

Court records reveal that Kotecha’s son, Gaurav Jayesh Kumar Kotecha, a Tanzanian businessman, has been subject to Interpol arrest warrants in connection with the same fraud allegations.

The international dimension underscores the sophisticated nature of the alleged scheme and the challenges facing law enforcement agencies in pursuing cross-border financial crimes.

The case has also exposed the vulnerabilities in Kenya’s financial sector, particularly regarding the oversight of mortgaged assets and the responsibilities of companies under administration.

Prime Bank Limited, the alleged victim, had placed Midland Hauliers Limited under administration in 2019 after the company failed to meet its obligations.

The implications of the July 29 ruling extend far beyond the immediate parties involved.

For Kotecha, the decision represents the difference between potential freedom and facing the full weight of the criminal justice system.

A successful prosecution withdrawal would effectively end his legal troubles, while a court rejection would thrust him back into a criminal trial that could result in significant penalties.

For the broader Kenyan legal system, the case represents a test of institutional integrity.

The tension between prosecutorial discretion and victims’ rights has rarely been so starkly illustrated.

As the July 29 date approaches, legal observers are watching closely to see how the court will balance the competing interests at play.

The judge must weigh the prosecution’s concerns about procedural complexity against the complainant’s right to see justice served.

The case has already taken several dramatic turns, from the initial charges filed years ago to the placement of Midland Hauliers under administration, and now to this unprecedented withdrawal attempt.

Each development has added new layers of complexity to what was already one of Kenya’s most significant corporate fraud cases.

The ruling will ultimately determine whether Kotecha’s legal odyssey ends with a whimper or continues with the full force of criminal proceedings. For a businessman whose corporate empire once commanded respect in Kenya’s transport sector, the stakes couldn’t be higher.

As Kenya’s legal system grapples with this high-profile case, the July 29 ruling will be watched not just by the immediate parties, but by the entire business community as a barometer of how the country’s institutions handle complex corporate crime cases.

The countdown to July 29 has begun, and with it, the final chapter of a legal saga that has captivated Kenya’s attention and tested the limits of its justice system.