MUTARE businessman Kumarpal Natwar Shingadia has been acquitted of fraud and theft of trust property charges by the Harare Regional Court.
Regional magistrate Learnmore Mapiye cleared Shingadia at the close of trial on Wednesday.
Shingadia was arrested last July following allegations by his nephew, Bhavhick Bacool Shingadia, who is not a member of the company, that he unlawfully increased the company’s share capital, altered directorship without a resolution and misappropriated rental income.
In his defence, Shingadia maintained that the share capital increase was above board and that the rental proceeds belonged to Shingadia Furniture Mart (Private) Limited, not individual shareholders, who would only be entitled to dividends once declared.
He claimed that his prosecution was both unlawful and malicious.
The court found no evidence of fraud, noting that a special resolution and directors’ minutes supported the changes.
Two High Court applications seeking to overturn the resolution had previously failed.
On the theft allegation, the magistrate ruled that no dividends had been declared and no audit evidence or shareholder testimony was presented to prove misappropriation.
The prosecution was led by Culven Munyimi, while Shingadia was represented by Passmore Nyakureba, Shamiso Mungofa and Kudzai Tichawangana of Maunga Maanda and Associates Legal Practitioners.