Harare Magistrates: Kanjee Fraud Case Discharge Application Dismissed

• The Harare Magistrates Court dismissed an application for discharge by Thakorbhai Kanjee and Jaya Kanjee, who face fraud charges.
• The couple is accused of fraudulently increasing their shareholding in T and J Investments (Pvt) Ltd, a family-owned commercial property company.
• Complainant Neeshta Urmila Patel, niece of the accused, inherited her late father's shares and alleges the Kanjees allotted themselves additional shares without her consent.
• Patel claims she refused to sign a resolution for equal share distribution, yet a Return of Allotments (CR 11) later showed the Kanjees had each gained 10 additional shares.
• After failing to access company records, Patel filed a police report, leading to the Kanjees' arrest in July 2025.

The court's decision to dismiss the discharge application underscores the seriousness of the allegations and mandates that the Kanjees formally address the claims of corporate governance breaches and share fraud within the context of their family business in Zimbabwe.

The Harare Magistrates Court has dismissed an application for discharge lodged by Thakorbhai Kanjee, 73, and his wife Jaya Kanjee, 71, who are currently facing fraud charges. Magistrate Artwell Sanyatwe determined that the couple, represented by their lawyer Paidamoyo Saurombe, must proceed to present their defense, concluding that the state had presented sufficient evidence to warrant a response. Thakorbhai, identified as the head of Westridge Primary School, along with Jaya, stands accused of fraudulently increasing their shareholding in a family-owned company, an action that allegedly prejudiced another family member.

The core of the accusation revolves around the Kanjees' alleged unlawful allotment of additional shares to themselves in T and J Investments (Pvt) Ltd. This was reportedly done without the explicit consent of a fellow director. The court's decision to dismiss the discharge application underscores the seriousness of the allegations and mandates that the Kanjees formally address the claims of corporate governance breaches and share fraud within the context of their family business in Zimbabwe.

Neeshta Urmila Patel, the complainant in this matter, provided testimony detailing her relationship with the accused, identifying Thakorbhai Kanjee as her uncle and Jaya Kanjee as her aunt. She further explained that her late father, Arvindbhai Bhikubhai Patel, was a co-director alongside the Kanjees in T and J Investments (Pvt) Ltd, a company whose primary business involves the ownership and leasing of commercial properties. The company's inception date was March 27, 1990, with the initial share distribution granting Arvindbhai Patel 20 shares, while both Thakorbhai and Jaya Kanjee each held 10 shares.

A significant shift in the company's structure occurred following the death of Arvindbhai Patel on March 7, 2015. Neeshta Urmila Patel was subsequently appointed as the executor of her father's estate on July 24, 2015. Through this appointment, she inherited her father's substantial shareholding in the company, thereby becoming a director and a crucial party in the ongoing corporate governance of T and J Investments. This succession forms the backdrop against which the alleged fraudulent share allotments took place.

Patel's testimony outlined that on August 16, 2024, the Kanjees presented her with a special resolution. This document proposed a redistribution of shares to ensure equal holdings among all shareholders. Crucially, Patel asserted in court that she did not sign this document, indicating her non-consent to the proposed changes. Despite her refusal, a Return of Allotments (CR 11) was issued on September 10, 2024, which, according to Patel, showed that Thakorbhai Kanjee and Jaya Kanjee had each allocated themselves an additional 10 shares in T and J Investments (Pvt) Ltd.

Following this discovery, Patel attempted to access the company's official file from the Registrar of Companies to verify the changes but was unable to do so. This alleged unauthorized share transfer and the subsequent difficulty in obtaining company records prompted Patel to file a police report on March 11, 2025. The police investigation culminated in the arrest of Thakorbhai and Jaya Kanjee on July 14, 2025, initiating the formal Kanjee fraud case before the Harare Magistrates Court, highlighting the importance of meticulous adherence to company law procedures in Zimbabwe.

Lawyers advising clients on corporate governance in Zimbabwe, particularly within family-owned businesses, should note the court's strict stance on fraudulent share allotments. This case underscores the importance of meticulous adherence to company law procedures and obtaining proper consent for share transfers, especially following a director's death, to avoid criminal fraud charges.

Source: Original reporting via 263Chat and AllAfrica