16 February, 2009

Of realty ties undone

Read in the pages of Wall Street Journal:

A Dubai deal called into question as boom ends:

Mr. Zadeh's experience, compiled though court and company documents, offers a rare window into the murky business world that helped transform this city from an empty coastline into a metropolis. It also may offer a cautionary tale for investors lured to the city, which bills itself as the modern face of a new Middle East.

…the judicial system in the U.A.E (has long been criticized) for a lack of independence and oversight. In the good times, investors didn't fret much about these shortcomings. Now, some of the same deals that helped build Dubai are coming undone -- in particular, a tradition of off-the-book business partnerships between Emirati citizens and elite expatriates…


Mr. Zadeh has not been charged with a crime. But for the past year, authorities have held onto his passport, making it impossible for him to travel or find work. "I used to believe in the miracle of Dubai. But now I see it all as a mirage," said Mr. Zadeh, 37.


And then in the Financial Times:

The executive at the centre of $100m fraud allegations rocking Dubai’s property sector has hit back with a counterclaim that his accusers have defaulted on more than $18m of debts owed to his company. Kabir Mulchandani, chairman of Dynasty Zarooni, claimed that a series of cheques written by investors had bounced as the real estate industry’s fortunes plunged late last year.

In an interview at Dubai’s Port Rashid police station, where he has been held since last month, Mr Mulchandani told the Financial Times he was pursuing cheques totalling Dh68m ($18.5m, €14.5m, £13m) that were written by Dynasty investors to pay for property. He claimed they bounced in late December as the international financial crisis hit the emirate’s business community.

“This is a wonderful country,” he said, “but ... it is still gearing up to deal with these complaints, because this is the first time they have had a property meltdown.” The case – involving one of Dubai’s largest private real estate companies – highlights concerns that the emirate’s legal system is poorly equipped to cope with the slew of disputes arising as the sector turns sour.

5 comments:

Anonymous said...

no comments ? must be those new media laws eh ?

A Blessing in Tragedy said...

Or your stupidity, eh?

hemlock said...

anon: heh. given the identities of some people mentioned, im not surprised people are biting their opinions.

btw, are you canadian?

Anonymous said...

lol @ hemlock......

sooo truuueeee......

Kabir Mulchandani said...

Almost the same has happened to me nearly 5 years ago when i was framed in similar kind of property fraud. Now after years of legal battle Dubai court has cleared me (Kabir Mulchandani) of all previous charges but it will take some time people realize what has happened to Kabir. Some time i wonder how easy is to trap the innocent in Dubai over false cases. Have a look at my innocence..

The latest is that Kabir Mulchandani an indian expatriate in dubai, the real estate tycoon cleared of fraud charges in December, said he will not sue his accusers but may take legal action against media outlets that published defamatory claims against him.

Kabir Mulchandani is currently a CEO of Skai Holdings Dubai. How would be this possible if he was guilty and but freely running a property development company "Skai Holdings" ?

http://www.arabianbusiness.com/-no-point-in-pursuing-accusers-says-mulchandani-401266.html

Good Luck
Kabir Mulchandani

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