Kayla Itaoui, daughter of Sanity boss Ray Itaoui, cleared to return home after major charge dropped

Kayla Itaoui has chalked up two wins in court this week, as she fights allegations she stabbed her husband during a psychotic episode.

Kayla Itaoui with her lawyer outside Burwood Local Court.

The stepdaughter of Sanity Music and retail boss Ray Itaoui has scored two major court wins this week, as she fights allegations she stabbed her husband in the throat during an acute psychotic episode.

This publication can reveal prosecutors formally dropped a charge of wounding with intent to cause grievous bodily harm against Kayla Ann Itaoui during a brief hearing in Burwood Local Court on Wednesday.

Itaoui is now facing a single charge of assault occasioning actual bodily harm. She is yet to enter a plea.

Meanwhile, Itaoui fronted the NSW Supreme Court on Friday where Justice Desmond Fagan agreed to alter her bail conditions to allow her to return to live with her husband, Adam Allam, at their Greenacre home.

The court heard Itaoui had been allowed to visit the home throughout the day as part of her original bail conditions, but was required to return at night to her parents’ Vaucluse mansion, which the Itaouis purchased for $47 million in 2017.

Sanity boss Ray Itaoui with his daughter Kayla. Picture: Facebook.

The change means Itaoui can now live permanently at the family home. She must still abide by other conditions that remain in place, including receiving regular medical treatment.

The court heard police will allege Itaoui stabbed Mr Allam in August last year while on day release from Concord Hospital, where she had been receiving mental health treatment for acute post-natal depression.

In a previous bail application, Itaoui’s barrister, Abigail Bannister, said the 30-year-old had began having delusional episodes with “severe psychotic features” after the birth of her youngest child.

The court heard Itaoui was now receiving monthly injections of antipsychotic medication, which had successfully stabilised her moods.

In granting the application to allow Itaoui to return home, Justice Fagan saidher alleged conduct appeared to have arisen “in extraordinary circumstances of ill-health following her pregnancy”.

“Things seem to have resolved pretty substantially,” he said.

Mr Itaoui — who is named in the top 100 richest people in Australia — is the current chief executive of Best and Less.