Kharki Shushmita, wife to embattled tycoon Ali Punjani, and her four co-accused in the probe on their possible involvement in drug dealing have been released.

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The group was arrested on Tuesday, over claims of engaging in drug trafficking, days after police began their pursuit of the businessman whom they believe is a mega drug baron.

Shushmita, her nephew Bashyal Siva Prasad, two of their workers Boniface Maelo and Lucy Njeri Jane and Prasad's Indian friend Ram Manoj were arraigned before court on Thursday.

The four were arrested when the police raided Punjani's palatial home in Nyali, Mombasa, in search of evidence to in the drug trafficking allegations levelled against him.

However, Shanzu Resident Magistrate David Odhiambo on Thursday released them over lack of evidence, blaming the prosecution for fronting a weak case.

“It is now apparent that the prosecution was not ready to charge the respondents. You can go out, look up at the sky and thank God that your fundamental rights have been upheld by the law, said the magistrate.

Prosecutor Shakwila Ayekha blamed the prosecution's defeat on incomplete investigations, while the lawyer of the accused Jared Magolo agreed with Ayekha's request to close down the case's miscellaneous file.

“This file should not have been opened in the first place. The prosecution should apologise for wasting the respondents' time in custody,” said Magolo.

The judge ordered that the group be immediately released as the prosecution was not willing to proceed with the case.