City Lawyer and Director Refund Sh100M in Stolen Shares, Court Confirms

NAIROBI – A dramatic legal battle over fraudulently obtained shares worth Ksh 100 million came to an unexpected close at the Milimani Law Courts on Friday, as a Nairobi lawyer and a company director surrendered the disputed assets, prompting the withdrawal of criminal charges against them.

Senior Principal Magistrate Dolphina Alego officially terminated the case after the Director of Public Prosecutions (DPP) confirmed that the matter had been settled out of court.

The accused, Philemon Morara Apiemi, an external lawyer for Global Apparels Kenya (EPZ) Limited, and Shahdadpuri Chanshyam Choithram, a director in the same company, had faced allegations of conspiring to defraud the heirs of the company’s late owners, Suresh Lakhiani and Narrain Choithram.

The prosecution claimed the duo falsified company resolutions, transfer deeds, and statutory declarations to siphon off 250,000 ordinary shares valued at Ksh 25 million and 75,000 preferential shares worth Ksh 75 million between October 16, 2016, and June 13, 2018.

State prosecutor James Gachoka told the court that the decision to withdraw the case under Section 87(a) of the Criminal Procedure Code came after Choithram, the uncle of the heirs, and Morara agreed to return the shares to the rightful owners. “The matter has been settled out of court, and a resolution reached,” Gachoka submitted.

The complainant, Harish Suresh Lakhiani, one of the heirs, confirmed the settlement in court. When Magistrate Alego inquired, “Have you resolved this dispute?” Lakhiani replied, “Yes, the matter has been settled, and I wish the case be withdrawn against the two.” The magistrate, satisfied with the restitution and the complainant’s stance, marked the case as withdrawn and discharged the accused.

The prosecution had painted a meticulous scheme, alleging that on July 12, 2018, Morara and Choithram presented forged documents—including a written resolution, statutory declaration, and transfer deed—at the Registrar of Companies in Nairobi, falsely claiming them as genuine.

They were further accused of fabricating a statutory declaration dated October 14, 2016, purporting it to be sworn by Lakhiani himself, in a bid to legitimize their actions.

In a surprising twist, the accused expressed magnanimity following the withdrawal. “We unequivocally forgive the complainant despite the pain and suffering arising from this ill-advised criminal complaint,” their statement read, signaling an end to the family and legal feud.

Magistrate Alego capped the proceedings by ordering the refund of their cash bails—Ksh 300,000 for Morara and Ksh 500,000 for Choithram—bringing closure to a saga that had gripped the Export Processing Zone-based apparel firm.