After a trial which lasted for more than two years, Kingston businessman Raju Khemlani was on Tuesday freed of five fraud charges.

Khemlani, 56, was accused of defrauding his cousins, the Mahtanis, in a deal to purchase a commercial building in Kingston. The Crown alleged at the trial, which began in December 2006 in the Corporate Area Resident Magistrate's Court, that Khemlani entered into a business deal with his cousins to purchase a building for a store at 81B King Street, downtown Kingston.

It was further alleged that the agreement was for the Mahtanis to purchase a third of the building and the accused, two-thirds. They would then get splinter titles.

The Mahtanis said they first made a deposit of $5 million, and subsequently, a total of more than $14 million to the accused. The deal went sour because the Mahtanis claimed that Khemlani failed to deliver an unencumbered title to them as was agreed.

Arrested and charged

Following investigations by the Fraud Squad, Khemlani was arrested and charged with five counts of fraud.

In his defence, Khemlani, who was represented by defence lawyers K.D. Knight, QC, Bert Samuels and Akilah Anderson, said he was innocent of the charges. He said the transaction failed because of the action of a bank, which foreclosed on him. Khemlani said he has since sued that bank to reclaim the building.

Senior Resident Magistrate Judith Pusey said she found that Khemlani had no intention to defraud his cousins. She said also that Khemlani's course of conduct was inconsistent with the offences for which he was charged.

The Crown was represented by attorney-at-law Garth McBean.

barbara.gayle@gleanerjm.com