Rogue Dangerous Sugar Cartels Sunil Narshi Shah and Kamal Narshi Punja Shah of United Millers Ltd found guilty in Sh79 Million Fraud


Two directors of a Kisumu-based company have been found guilty of conspiracy to defraud a trader of Sh79.4 million in a sugar deal seven years ago.

City Court Chief Magistrate Roseline Oganyo found Sunil Narshi Shah and Kamal Narshi Punja Shah of United Millers Ltd guilty of conspiring to defraud B N Kotecha & Sons Ltd of Sh79,491,000.

The directors allegedly pretended they had lost business through the latter’s failure to supply sugar in April 2015.

Besides the two directors, the court also convicted their two employees – Kumar Verma and Henry Munywoki Kavita, the sales manager, for conspiring to commit the fraud.

The quartet were also found guilty of conspiracy to defeat the course of justice by filing a civil suit at the High Court in Kisumu against B N Kotecha & Sons Ltd, Hermal Kishor Kotecha and Hashill Kishore Kotecha, using falsified documents.

The case was meant to help them lay a claim of compensation to the tune of Sh124 million for loss of business.

The magistrate said the five presented to the High Court in Kisumu forged local purchase orders (LPOs) obtained from Warma General Merchants, Kabui Traders, Huruma Stores, Alysum Stores, Cumulus Services, Githitu Stores, Lincon Stores Ltd, J B Stores and Alkim Mini Price Stores for the supply of sugar and other commodities.

The accused persons accused of conspiring to defraud Kotecha and Sons ltd of Sh79.4 million by falsely pretending to have lost business after the supplier allegedly failed to supply sugar to United Millers. They are alleged to have committed the offence on April 2, 2015.

They were further accused of presenting fake documents before the High Court in Kisumu in October 2015, a case that was pending in court.

The company and its directors are alleged to have filed a case in court seeking refund of their monies together with special damages amounting to Sh79.4 million claiming to have lost business as a result of the failing to get the supply of sugar.