PUTRAJAYA (Nov 12): 1Malaysia Development Bhd has been allowed to enter a sworn statement of Datin Seri Rosmah Mansor’s shopping partner as evidence in its suit alleging purchases of luxury goods with its funds.

The decision to admit the affidavit spanning over 300 pages by Shabnam Naraindas Daswani, a Singaporean who frequently accompanied the wife of former prime minister Datuk Seri Najib Razak on overseas trips, was unanimous at the Court of Appeal on Thursday.

"The High Court judge had erred in not admitting (Shabnam's) affidavit and appellate intervention is warranted," judge Datuk Leonard David Shim said in reading out the ruling.

The three-member bench was led by Datuk Dr Alwi Abdul Wahab and also included Datuk Ismail Berahim.

The affidavit was meant to support an application for Mareva injunction against Rosmah — an order that stops her from moving, selling, or hiding the assets — as part of the claim totalling US$346 million (RM1.632 billion) filed by the state-owned company also known as 1MDB.

In April 2025, the lawsuit against Shabnam was dropped through a consent order after she agreed to cooperate with Malaysian authorities to help recover the valuables. In June 2025, Shabnam affirmed the affidavit to support 1MDB's bid.

In November 2025, the Kuala Lumpur High Court refused to let 1MDB admit Shabnam’s affidavit as evidence, ruling that it was filed too late.

The extension of time to admit Shabnam’s affidavit was justified as it was voluminous, Shim said on Thursday.

The bench also ordered Rosmah to pay RM30,000 costs.

1MDB and 10 related companies are suing Rosmah, 75, accusing her of buying jewellery, luxury handbags, and other valuables from 48 vendors from 14 countries. Shabnam was initially named as a defendant alongside Rosmah for having purchased or procured the luxury goods for her.

The plaintiffs, which filed the suit in June 2024, are seeking a recovery of the luxury goods, their traceable proceeds, and a declaration that Rosmah received them for no consideration, alleging that it is a breach of her fiduciary duties or trust.

Alternatively, she has to pay US$346.01 million to compensate the plaintiffs for the cost of the luxury goods she received as a result of the breach, and her assets frozen to the amount.

The lawsuit follows a failed forfeiture application by the authorities after a highly publicised raid on a condominium owned by OBYU Holdings Sdn Bhd at Pavilion Residences, Kuala Lumpur, in May 2018.

The police had seized over 12,000 pieces of jewellery, several hundred handbags, and watches during the raid.