Why we are against discontinuance of $8.8m fraud against 2 Britons

SOME lawyers led by Mr Olayinka Ola-Daniels, have expressed their displeasure over the Lagos State Attorney General’s decision not to continue with an alleged $8.8m fraud suit against two British nationals, Deepak Khilnani and Sushil Chandra.

Mr Khilnani, a chartered accountant was charged to court by the Lagos State Government in connection with $8,776,862 fraud.

At Friday’s proceedings, Olayinka told the court that the matter was of public interest and that the Attorney General ought not to discontinue such matter without giving any reason to the court.

He said since the police and the Director of Public Prosecutions (DPP) had investigated the matter and concluded that the defendants have case to answer, adding that the court had on April 3, 2016 issued arrest warrant on the defendants on the request of the state counsel, therefore he found it surprising that the AG would want discontinue with the case.

Trouble started for Khilnani and Chandra in 2013 after their Nigerian partners petitioned the Inspector General of Police (IGP) accusing the duo of financial crimes.

According to the petition, the complainants had in 2008 opened Letter of Credit in favour of Khilnani’s firm, Gentec Energy Plc. UK, for the purchase of equipment for the local partnership.

The petition led to Mr Khilnani’s arrest and interrogation by the police, but he was immediately granted bail with his lawyer, Chris Okunowo, standing as his surety, while investigation into the alleged crime lasted for about a year.

Upon completion of investigation, a six-count criminal charge was subsequently filed by the police under sections 323(1), 285(8), 321(1) and 312 of the Criminal Laws of Lagos, 2011.

But on July 4, 2014, the day Mr Khilnani was to be produced before a Senior Magistrate at the Igbosere Magistrates’ Court, the police prosecutor, Inspector Stephen Molo, informed the Presiding Magistrate that Mr Khilnani reportedly jumped administrative bail granted by the police and fled to the UK.

Efforts to bring Mr Khilnani to face his trial was however unsuccessful. The Lagos State Attorney General and Commissioner for Justice took over the case from the police and directed the DPP to have further conduct of the proceedings.

Based on DPP’s recommendation, the Lagos State Government charged Khilnani and his alleged accomplice, Dr Sushil Chandra before the High Court in 2015 for defrauding their Nigerian business partners Green Fuels Limited of $8.8 million in 2008.

The trial had been protracted since 2015 but the defendants, even though always represented in court by his Nigerian counsel, they had repeatedly failed to appear in court, until recently when the state notified the court of its plan to review the case.

The prosecution team led by Akin George informed the court that the state had filed a notice of discontinuance dated June 29, 2017 after reviewing the charges against the defendants and the state Attorney General was of the view that there was no need to pursue the trial.

“My Lord, we did inform this court at the last adjourned date that the Attorney General is reviewing this matter. The outcome of this review is that the state has filed a notice of discontinuance of this trial. We pray the court to strike out this matter,” he said.

Following the submission of the state prosecuting lawyer, counsel to the defendants, George Oguntade, SAN, prayed the court to strike out the charges against his clients.

Oguntade also urged the court to strike out an earlier arrest warrant issued against his clients.

However, in a short ruling, Justice Oluwatoyin Ipaye held that the statutory powers to initiate and discontinue a criminal proceeding in Lagos State lies with the Attorney General.

“The state represented by the Attorney General has the absolute powers to initiate and discontinue a criminal proceeding. It is not for this court to mitigate or investigate the exercise of this legitimate powers. I see no reason why this charge should not be struck out. This charge is hereby struck out,” the Judge ruled.

The judge also struck out the warrant it had earlier issued for the arrest of the two defendants.

“An order of arrest made by this court for the arrest of the defendants dated April 3, 2017 is hereby vacated. This matter is adjourned sine die,” she held.