The Director of Public Prosecutions (DPP) has filed an application to withdraw a criminal case in which the directors of a flower export company were accused of orchestrating a complex KSh 110 million fraud scheme.
Prosecuting counsel Virginia Kariuki, appearing on behalf of the DPP, informed Milimani Principal Magistrate Paul Mutai on Tuesday that, following a comprehensive reassessment of the case file, the prosecution had resolved that the matter was better suited for determination in a civil court rather than through criminal proceedings.
“The instructions from the DPP are to apply for the withdrawal of this matter. Upon thorough review of the evidence and circumstances, we are convinced that the appropriate forum for resolving this dispute is a civil court where the complainants may pursue redress,” Kariuki told the court.
However, the defence team vehemently objected to the prosecution’s application.
In a firm response, the defence counsel argued that they were not ready to proceed with the withdrawal request and requested time to file a formal reply.
“We oppose the application by the DPP to withdraw this matter. This is a serious case with significant implications, and we request adequate time to file our submissions in response,” submitted the defence lawyer.
Magistrate Mutai, in his brief ruling, acknowledged both sides’ submissions and directed that the withdrawal application be put on hold until written submissions are filed and considered by the court.
“I have listened to the prosecution’s application and the defence’s opposition. I now direct both parties to file their respective written submissions. The court will not allow the withdrawal of the matter until the submissions have been properly filed and reviewed,” ruled Magistrate Mutai.
He further scheduled the matter for mention on September 30, 2025, to confirm compliance with the directive on submissions.
The case involves Shailesh Kumar Rai and his wife Ranjeeta Pandey Rai, directors of Rosalia Blooms Limited, alongside two employees, Isaac Ikua Kihara and Chris Oyunge.
The four had been arraigned before Milimani Senior Principal Magistrate Martha Nanzushi in connection with allegations of theft, conspiracy to defraud, and forgery amounting to over Ksh 110 million.
According to the prosecution, the accused persons conspired to defraud Heritage Flowers Limited, where Rai and Ranjeeta previously held directorial positions.
They allegedly misappropriated Euros 368,416.71 (approximately Ksh 60,678,697) and USD 348,166.94 (approximately Ksh 49,578,972), funds belonging to Heritage Flowers Ltd.
The prosectution stated that between September 21, 2021, and August 2022, at Diamond Trust Bank (DTB) in Nairobi, the accused knowingly concealed the disposition of these funds, which the prosecution contends were proceeds of crime.
Further, the couple is facing charges of concealing an additional USD 88,495 (approximately Ksh 12,566,290) at DTB.
Multiple counts of forgery were also levelled against the accused.
Rai, Ranjeeta, and Kihara were charged with forging minutes of a management operations meeting dated September 17, 2021, purportedly held at Heritage Flowers Ltd.
They also allegedly forged a Commission Agreement within the company’s offices, and a Loan Agreement dated February 22, 2022, purportedly between Rosalia Bloom Ltd and Shailesh Kumar Rai.
The loan agreement named Rai as the borrower and his own company as the lender.
In addition, Rai was individually charged with forging minutes of a virtual board meeting of Rosalia Bloom Ltd, dated February 19, 2022.
A joint charge further alleges that all four, Rai, Ranjeeta, Ikua, and Oyunge, forged a Trust Deed between Rosalia Bloom Ltd and Heritage Flowers Ltd, dated September 26, 2021, falsely representing it as a legitimate legal document.
The final count in the charge sheet alleges that the five, including the corporate entity Rosalia Blooms Ltd, conspired to defraud Heritage Flowers Limited of the following amounts Ksh 10,520,919, Euros 368,416.71 (Ksh 60,678,697), USD 348,166.94 (Ksh 49,578,972)
All the accused were previously released on a cash bail of Ksh 2 million each pending the hearing and determination of the case.
