1MDB drops lawsuit against S'porean woman in Rosmah luxury goods case

1Malaysia Development Berhad (1MDB) has withdrawn its lawsuit against a Singaporean woman previously believed to be involved in an alleged purchase of luxury goods using the company's funds.

Shabnam Naraindas Daswani, also known as Natasha Mirpuri, was initially sued in May 2024 along with Rosmah Mansor, wife of former Malaysian Prime Minister Najib Razak.

1MDB and ten of its subsidiaries dropped the civil suit against the woman on Apr. 9 with an option granted by the court to re-file the same case, reported Bernama.

1MDB allowed to re-file case

On May 9, 2024, Shabnam was sued by the company after being accused of misappropriating 1MDB funds and acquiring luxury items worth over US$346 million (S$463 million).

She was named the second defendant in the case with Rosmah, who was the main defendant.

According to New Straits Times (NST), the items include jewellery, handbags and other luxury goods.

Both 1MDB's lawyer Nathalie Ker Si Min, and Shabnam's lawyer N Sivananthan, confirmed that the company decided to withdraw the lawsuit during an online proceeding before the Malaysia High Court on Apr. 9.

The consent judgment was recorded, along with liberty to file afresh.

This means that 1MDB is allowed by the court to re-file the same case despite the withdrawal.

Rosmah Mansor may have to give up luxury items in her possession

The case first came to light when payments made to 48 vendors across 14 countries were detected between 2010 and 2014, reported NST.

Singapore had been one of the places on the list, along with the British Virgin Islands, Hong Kong, India, Indonesia, Italy, Lebanon, Mauritius, Panama, Thailand, the United Arab Emirates, Turkey, the United Kingdom, and the United States.

Funds totalling US$346 million meant for official investment purposes were allegedly sent to offshore accounts reportedly controlled by Najib.

The ten subsidiaries involved as co-plaintiffs with 1MDB in the lawsuit are 1MDB Energy Holdings Limited, 1MDB Energy Limited, 1MDB Energy (Langat) Limited, Global Diversified Investment Company Limited, SRC International Sdn Bhd, Affinity Equity International Partners Limited, Alsen Chance Holdings Limited, Blackrock Commodities (Global) Limited, Blackstone Asia Real Estate Partners Limited, and Brightstone Jewellery Limited.

They are currently seeking a court order to make Rosmah, who remains a sole defendant in the ongoing proceedings, to repay the amount or an amount to be determined by the court along with additional damages or compensation.

The subsidiaries have also sought declarations demanding rightful ownership of the luxury items currently believed to be in her possession.

Top photos via Royal Malaysia Police & Chris Jung/NurPhoto via Getty Images