Dynasty Zarooni Dubai back in the Headlines – Another crimninal complaint ?

original source dailymail uk

For successful London jeweller Nadeem Osman, Dubai had all the bling in the world. Like thousands of others, he loved the city’s fast life, with its sports cars, glitzy shopping malls and super-luxury hotels. And, of course, its sun and fabulous beaches.

The 37-year-old businessman from Balham, South London, holidayed there at least twice a year with his wife and even thought of moving there eventually, away from the rain and cold of England.

So 14 months ago, as an investment on the side, Mr Osman decided to buy four apartments in the city, which he planned to rent and also use as his holiday homes.

Losing its sparkle: Jeweller Nadeem Osman bought four flats in Dubai last year, just before the property market there crashed

He paid £580,000 for two off-plan apartments in Villa Caria, a residential block in Jumeirah South, and two more in a proposed hotel on the Dubai Waterfront, known as Hotel K. But his timing could not have been worse, with the Dubai property market then going into free fall: down 32 per cent in the first quarter of this year and 47 per cent in the second, according to Knight Frank.

Assetz, a property investment company, estimates that the fall may reach 70 per cent this year. Mr Osman bought the apartments through Dynasty Zarooni (DZ) – one of the city’s biggest real estate companies, with a portfolio of properties worth £219million.

He paid the full sum upfront, assured that the money would be put into an escrow account which protects a buyer’s money until the work is complete.

In January, one of the directors of DZ was arrested on a £60million fraud allegation – and since released without charge – but work on Hotel K has not even started. It is scheduled to finish by 2011. The company does not even own the land on which it was to be built.

Villa Caria was supposed to be completed by the end of this year, but DZ has told him it may take a further two years. Mr Osman has also been told that his money was not put into an escrow account, and he is unable to get any back.

‘I don’t know what to do,’ he said. ‘If it was in this country I could do something about it, but in Dubai it’s so difficult as there is a huge backlog in the courts.’

Dynasty Zarooni has declined to comment after repeated attempts to contact it.

Mr Osman has now formed a group with ten other investors to decide whether to take legal action or file a criminal case.

Dubai’s courts are struggling with a mountain of property cases totalling £3billion – as much as £500million may involve British investors.

Stuart Law, of Assetz, says Britons, who were the largest Western investors, were partly responsible for the crash as they inflated prices through their highly geared buy-to-let schemes.

‘We’ve known of properties that were sold again and again about ten times one after another – it was good as each person made a profit, but the person who was left with the contract at the last was in trouble,’ said Mr Law.

Read more: http://www.dailymail.co.uk/property/article-1228306/Why-Dubai-lost-sparkle-UK-jeweller.html#ixzz0X3PuoMQ0

Sheikh Maktoum Hasher Maktoum Al Maktoum – Iranian’s lawsuit reveals royals’ power in UAE

source WoMy BlogsrldTribune 09 June 2009

A  member of the royal family (Sheikh Maktoum Hasher Maktoum Al Maktoum)  in the United Arab Emirates has for the first time been sued by an Iranian executive on charges of fraud.

Shahram Abdullah Zadeh has sued the brother-in-law ( Sheikh Hasher Maktoum Al Maktoum) of the emir of Dubai ( Sheikh Mohammed bin Rashid Al Maktoum) in an unprecedented civil action in the UAE. The 37-year-old Iranian national has accused the brother-in-law, Hasher Maktoum Bin Juma’a Al Maktoum, of trying to take over Zadeh’s real estate firm.

“He thought he could do it all because he’s a sheik,” Zadeh said

Shahram Abdullah Zadeh CEO Al Fajer Properties 2008

The suit has challenged the transparency of the justice system of Dubai, which requires foreign investors to take on a UAE partner. Zadeh said he reverted to a civil action when prosecutors refused to file criminal charges against Hasher.

Zadeh, a life-long resident of Dubai, said he selected Hasher as the required UAE partner in Al Fajer Properties, established in 2004 and now worth $2 billion. Zadeh said he and Hasher fell into a dispute amid delays in building a billion-dollar office tower.

The economic downturn in the UAE has harmed a range of partnerships with foreign investors. In Dubai, the commercial capital, police have detained nearly 20 executives on suspicion of fraud. None of the detainees was connected to the ruling Al Maktoum family.

“There is no room for corruption and the corrupt,” Dubai ruler Mohammed bin Rashid Al Maktoum said. “In all corruption cases, people are not only prosecuted and punished, administrative and legal holes that they exploited to commit their crimes are plugged.No one in the emirates is above the law and accountability.”

Zadeh said Hasher Maktoum Al Maktoum, who ignored two summonses, exploited his connections to the ruling family to have the Iranian arrested. In February 2008, Zadeh was imprisoned for 60 days and pressed to renounce links to Al Fajer.

As Zadeh languished in prison, Hasher Maktoum Al Maktoum was said to have taken over Al Fajer and appointed his son chief executive officer. By the time, he was released, Zadeh found that his office safe was ransacked and cleansed of any documents that linked him to the company.

At one point, Zadeh appealed to Dubai’s emir. He said the emir did not respond to the complaint against his brother-in-law.

“We understand that Al Fajer Properties is controlled by a powerful member of Dubai’s ruling family,” Moses Oye, who represents investors in another Al Fajer project, said.

Still, Al Fajer continues to operate. On April 15, Al Fajer and the Dubai Real Estate Regulatory Agency, RERA Dubai,  announced the first transfer of property using a new official online system.

Photo: Sheikh Maktoum Hasher Maktoum facing lawsuits from Investors of Ebony and Ivory Towers - also named Jumeirah Business Centre) developer in Dubai is Al Fajer Properties

Hasher’s son, Maktoum, was identified as president of Al Fajer.  Zadeh was not mentioned.

Foreign investors have demanded an investigation of another Al Fajer project, Ebony Ivory.

The investors, alleging fraud, have called on the Dubai Real Estate Regulatory Agency to force Al Fajer to issue a refund.

“We have paid approximately $140 million and have a signed contract from Sheikk Maktoum Hasher  Maktoum Al Maktoum,” Oye, who represents investors from Britain, Canada, India, Iran, Pakistan and the United States, said. “Now, we want our money back.”

Al Fajer Properties Case – Zadeh says he’s a victim of a system in which the rulers can manipulate police and the courts to protect their business

Al Fajer Properties Dubai 2009 , Sheikh Maktoum Hasher Maktoum Al Maktoum

source

DUBAI, United Arab Emirates — In this Gulf city-state, two things have long been untouchable: business interests and the ruling family. However, an attempt to sue a member of the family over an alleged financial swindle is a sign of how much the economic crisis has rattled business as usual here.

Shahram Abdullah Zadeh accuses the brother-in-law , sheikh Hasher Maktoum Al Maktoum, of Dubai’s emir illegally of taking over his real-estate firm Al Fajer Properties and having him detained by police to help the swindle.

Zadeh, a 37-year-old Iranian national who has lived in Dubai all his life, brought a civil case against the brother-in-law and his son Sheikh Maktoum Hasher Maktoum Al Maktoum to get his firm Al Fajer Properties back, a rare move. Even more surprising, shrahm Zadeh tried to raise criminal charges, but that step went nowhere because prosecutors rejected it.

The case has raised questions about whether Dubai really is what it claims to be: A boomtown where international businessmen can safely invest and turn a profit; or rather, a nest of cronyism and connections where royal blood can still trump entrepreneurial effort.

Such questions were largely ignored by everyone – businessmen and politicians alike – as long as the cash was rolling in during Dubai’s stunning expansion over the past decade. But now the emirate has hit the skids in the world financial crisis.

“During the boom, Dubai’s shortcomings were glossed over, but now that the economy is struggling, it’s becoming a different story,” said Christopher Davidson, an author of two books on the United Arab Emirates and a lecturer at Durham University in Britain.

Dubai’s emir, Sheik Mohammed bin Rashid Al Maktoum, led the emirate’s vast financial ambitions. But business ran far ahead of the effort to modernize legislation in what remains a traditional Arab monarchy, where the ruler and his family hold final say.

Now the government has been trying to rein in some fast-and-loose business practices. About a dozen former executives are in custody for various investigations. Some have close ties to the government, but none of those in custody are related to the ruling family.

Zadeh’s case goes farther – breaking to taboo of questioning Dubai’s leadership. Zadeh says he’s a victim of a system in which the rulers can manipulate police and the courts to protect their business.

“If Dubai cannot provide security for foreign investors, they might as well switch off all the lights,” he said.

Attempts over the past weeks by The Associated Press to contact the brother-in-law, Sheikh Hasher Maktoum bin Juma’a Al Maktoum, were unsuccessful. Hasher Maktoum Al Maktoumand his company attorneys did not return repeated phone calls or respond to interview requests.

In the first session of Zadeh’s civil case, Hasher Maktoum Al Maktoum and his lawyers failed to appear. In the second a week ago, his lawyer asked the court for more time to study the allegations. The case is to resume May 4.

Zadeh and the Sheikh Maktoum Hasher Al Maktoum went into business in 2004. Foreigners are allowed to deal in property only after finding an Emirati sponsor to officially register a company. The usual practice is for the Emirati sponsor to give his signature for an annual fee or profit share. Several members of the sprawling ruling family are involved in such deals.

Zadeh set up a firm, Al Fajer Properties, and was chief executive while Sheikh  Hasher Maktoum Al Maktoum held the trade license. The firm was profitable and is now worth about $2 billion, according to Zadeh. But the partnership soured over delays in building a commercial tower, Juemirah Business Centre.

Zadeh said in an affidavit to Dubai’s attorney general that he was arrested in February 2008 and held for 60 days. He says he was never charged with any crime but was questioned over his business – including the combination of his safe.

While Zadeh was in detention, Sheikh Hasher Maktoum Al Maktoum took over the company Al Fajer Properties by appointing his son Sheik Maktoum Hasher Maktoum Al Maktoum as chief executive, ousting Zadeh, according to Zadeh’s filing. When he was released, Zadeh says he found his office safe had been cleaned of documents showing he was the owner of Al Fajer Properties and Hasher Maktoum Al Maktoums partner.

Zadeh also says police tried to push him to sign a document saying he had no connection to Al Fajer Properties. He submitted to the court

Al Fajer documents listing him as CEO and transactions that his lawyers contend show he was the sole investor. The Associated Press was given a copy.

Sheikh Hasher Maktoum Al Maktoum  “thought he could do it all because he’s a Sheik,” Zadeh said.

Police refused to comment on whether Zadeh was detained. Shahram Zadeh says they continue to hold his passport and so far he has had little luck pushing his claims.

He submitted a criminal complaint but the attorney general refused to investigate, giving no reason.

Zadeh then filed a complaint directly to Dubai’s emir, who holds what is called the Ruler’s Court. Residents can bring to the emir what they believe are injustices unaddressed by the courts – from disputes over money to wrongful deaths.

Zadeh says he has received no response.

see also: Terahn Times

More: Al Fajer Properties Dubai – Jumeirah Business Centre – Ebony Ivory Towers Dubai

Al Fajer Properties Scandal claim emerges amid media blockout

May 28. 2009
source Independent by Heerkani Chohan and PropertyWeek

Fake pictures allegations and a member of the ruling family , Sheikh Maktoum Hasher Maktoum, linked to a 429 pound million Dubai property row that has touched nerves across the city.

“Fake” pictures are at the heart of a property scandal that could harm the reputation of the once-booming real estate market in Dubai.

A major property development firm, Al Fajer Properies,  with links to the ruling family of the UAE city-state, and the firm’s marketing agency Dynasty Zarooni, are accused by investors, many of whom are UK citizens, of obtaining millions of pounds through the use of false construction photographs.

On Thursday, after local and regional media had been alerted to the situation by angry investors, news agencies across the city said they were silenced by senior representatives of the Government of Dubai, as orders were issued for reports of the storm to be pulled.

Around 500 property buyers of varying nationalities collectively purchased three planned tower blocks named Ebony 1, Ivory 1 and Ivory 2 in the Jumeirah Lakes Towers area of the Gulf city last year from property development firm Al Fajer Properties, at a total cost of £428 million.

The firm is part of the Al Fajer Group, ran by company president Sheikh Maktoum bin Hasher Al Maktoum, brother-in-law to the supreme ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum.

But at the weekend it was claimed that Al Fajer Properties and its marketing agent Dynasty Zarooni misled their customers into parting with millions of pounds by presenting photographs showing construction of three buildings, purported to be Ebony 1, Ivory 1 and Ivory 2, up to the sixth storey.

In fact the photographs were of buildings on neighbouring plots. Today, the plots on which Ebony 1, Ivory 1 and Ivory 2 are to be built, are empty holes in the ground, as our photographs show.

“I only handed over my money because I was shown property under construction,” said UK-based Ebony and Ivory Investor’s group spokesperson Moses Oye. “That’s my simple gripe. It’s a black and white issue.”

Mr Oye, who has parted with a little over £1 million – 20% of his total purchase price – had made the seven-hour flight from London to Dubai specifically to chair a press conference to raise awareness of the mess, after official government channels failed to take action.

“We have not sought legal representation as yet,” My Oye said, “because we have tried to square this correctly. The next step will be to go legal.”

However, the press conference was cancelled at the last minute by the hotel where it was to be held, citing “health and safety reasons.” The hotel, Dubai’s Mina A’Salam, is owned by Dubai Holdings, a Dubai government-controlled holding company.

“I asked for the reason to be put in writing, but the hotel refused,” Mr Oye said. “So I asked for a suite. But they said they did not have anything. I personally believe that the powers that be cancelled the meeting.” When contacted, Mina A’Salam management did not respond.

The conference was called to highlight a petition signed by the 500-strong investor’s group urging the Dubai Real Estate Regulatory Agency (Rera), the government body which oversees the Dubai property market, to force Al Fajer Properties to refund the £86 million that has to date been collected by the firm from investors in the three towers.

After the meeting was axed, news agencies were called to a

neighbouring hotel to be told of the escalating situation. But

when reports began to surface on news websites, news

agencies received phonecalls from senior Dubai

government figures ordering them to be pulled.

“I had written half of the article when I was told by my editor to stop,” said a Dubai-based national newspaper reporter who attempted to cover the story. “The investor’s group have records of payment, and it’s obvious that they have been shafted, but we can’t write about it.”

The lack of progress on the three towers is a source of deep concern for the investors. Many real estate projects across Dubai were put on hold or cancelled as the torrent of easy credit that fuelled rampant development in the city ran dry with the onset of the global financial crisis.

“Whether Al Fajer are still going to construct or not is neither here nor there,” Mr Oye said. “They would not have got my money if they had not shown me fraudulent pictures.” Al Fajer Properties also declined to comment.

Fellow investor’s group spokesperson Atul Patel, who has parted with £600,000 added: “A lot of people would not have bought had they not thought the project was in an advanced stage of construction.”

The pictures also appeared in an advertising campaign in a Dubai-based national newspaper last July, with the caption, “Shot at location on 10th June 2008. Ebony & Ivory – Jumeirah Lakes Towers.” The two page spread included the seals of Dynasty Zaronni and Al Fajer Properties. Dynasty Zarooni also neglected to comment.

The news will further dampen the spirits of the once-booming Dubai real estate market – a vital facet of the city’s economy. Last year a number of senior executives from major property developers across the city were arrested in a high-profile fraud clampdown as the government sought to clean up the property sector.

With it, the global recession has brought a host of new problems. Many construction firms operating in the city, some of which are UK-based, are owed millions of pounds by Dubai property developers struggling with a lack of liquidity.

Among them is UK engineering giant WSP. The firm’s finance director Peter Gill revealed that the firm is owed £28 million by Dubai-based developers, some controlled by the city’s government.

Dubai’s property market has been likened by some to a giant ponzi scheme, where bigger and more grandiose projects were announced in a bid to keep investment rolling in until the financial crisis tamed the city’s galloping development.

At Cityscape Dubai, a major property exhibition held last October, government-controlled developer Nakheel, responsible for the giant palm tree shaped islands off the coast of Dubai, announced it was to build the world’s first 1km high tower. The Nakheel Tower – if ever built – will eclipse the current world’s tallest building, Dubai’s own Burj Dubai.

Meanwhile, state-owned developer Meraas unveiled a mammoth £16.3 billion development called Jumeirah Gardens, to be built in place of an existing residential area in the city.

Today, the plot where the world’s new tallest tower should be under construction is little more than a sun-baked stretch of desert. Work on the Nakheel Tower was halted in January, and work on vast swathes of Jumeirah Gardens has also run aground.

The national media blackout over the Al Fajer case is unusual even in a country gripped by a harsh media law, and a pending new law, that has already drawn criticism for its prohibition of free speech.

A report by the US-based Human Rights Watch group into the UAE’s pending media law, Just the Good News, Please, was published last month. “(The pending law) includes troubling content-based restrictions on speech, draconian fines, and harsh registration requirements,” the report said.

It highlighted a number of the new law’s provisions, branding them: “Not only unlawful intrusions by the government into the right of journalists in the UAE to freely express their thoughts and opinions on any subject of their choosing, but also an unjustified attempt to control the independence of the media.”

Words that will do little to inspire confidence in Mr Oye. “This is going to define my faith in the country,” he said. “If I’m dealt with correctly, great. But at the moment, it’s not going that way. We’re in the witching hour now.”

Heerkani Chohan is the pseudonym of a journalist living and working in Dubai.

Sheikh Maktoum Hasher Al Maktoum Al Fajer Properties Dubai

Sheikh Maktoum Hasher Maktoum Al Maktoum Al Fajer Properties Dubai UAE

Where Are The Locals?

Forbes     March 11, 2009

Seven suspects have reportedly been singled out by the authorities, but all of them are foreigners.

Dubai’s anti-corruption probe seemed in full swing Tuesday, after seven expatriate businessmen were reportedly accused by prosecutors of taking part in a $500.0 million fraud at Dubai Islamic Bank. The suspects included three Britons, two Pakistanis, one Turk and one American, according to the Associated Press, raising concerns that local Emiraatis might not be held as fully accountable as the expat brigade.

“Some might say that it’s evidence of the anti-corruption drive, but again, where are the Emiraatis?” wondered Christopher Davidson, a British academic who has authored several books on Dubai and the United Arab Emirates. “There have to be the local sponsors, the line managers, the people whose desk at which the buck stopped.”

The alleged fraud involved a company called CCH, which according to reports was linked to some of the named suspects and may have forged documents to fraudulently obtain funds from Dubai Islamic Bank. The bank issued a statement on Tuesday claiming its exposure to CCH was around $330.0 million and that it was chasing down assets “in a range of countries.”

The former chief executive of Dubai Islamic Bank, Saad Abdul Razak, was reportedly taken into custody last year for questioning, as part of the authorities’ probe of the real-estate sector, but his name does not seem to have made the final list. Press reports claim that a handful of local Emiraati executives have also been interrogated, including Sami al-Hashemi, ex-CEO of real-estate developer Mizin, and Abdul Salam al-Marri, head of the Lagoons development on Dubai Creek.

Although Dubai’s defenders cite the example of a former cabinet minister, named in press reports as Khalifa Mohammad Bakhit al-Falasi, who was sentenced to two years in jail in February for an unrelated case of fraud and embezzlement, the truth is that very few local Emiraatis have been charged or punished as a result of such investigations.

Expatriate businessmen have also accused the Dubai authorities of torture and detention without charge, including Zack Shahin, ex-CEO of Dubai Islamic Bank’s real-estate subsidiary Deyaar Properties, and Shahram Abdullah Zadeh, former manager of developer Al-Fajer Properties. (See “Desert Storm In Dubai.”)

Zack Shahin is still behind bars and still has not been charged, according to one of his American lawyers, James Pitts, who told Forbes that there were around 40 other foreign businessmen in a similar situation in Dubai.

When asked whether Shahin might have provided names to the authorities in exchange for a lighter potential sentence, or exemption from the charge sheet, Pitts replied: “I am certainly not aware of any such arrangement.” 

Read also: Desert Storm in Dubai

Read also : Madoff of The Mideast Denies Charges 

Al Fajer Properties – Dynasty Zarooni – Investors Petition – 500 signatures

Al Fajer – Ebony & Ivory – Petition – Ordered to Pay 500 Million

Al Fajer Properties – Dynasty Zarooni – Ebony Ivory case – Dubai Court grants bail to Kabir Mulchandani

source GulfNews May 21, 2009

Dubai: Dubai Public Prosecution has granted bail to a senior executive of a real estate company who is being interrogated over alleged financial irregularities, Gulf News has learnt.

“The Dubai Public Prosecution granted bail to Dynasty Zarooni Real Estate’s Chairman Kabir Mulchandani. yesterday, but the interrogation continues over his alleged fraud and swindling charges,” a senior public prosecutor told Gulf News on Thursday.

Lawyer Eisa Bin Haider confirmed that his client was released on bail on Thursday.

The Case Dynasty Zarooni – Al Fajer Properties
Jumeirah Business Centre 7,8,9 -
Ebony Ivory Towers – Jumeirah Lake Towers

The Public Prosecution has been questioning Kabir Mulchandani., an Indian, and the firm’s president, an Emirati national, Hilal Al Zarooni, over alleged fraudulent charges.

Salem Al Sha’ali, the legal representative of investors who were reportedly swindled, said earlier some of his clients lodged nearly 30 complaints worth millions of dirhams against the suspects.

More about this case Dynasty Zarooni - Al Fajer Properties ( Jumeirah Business Centre – complaining investors) from the past

Al Fajer Properties – Dubai Court Case – Lawyer rubbishes lawsuit against Dubai sheikh

source BusinessMaktoob and  Zawya

Dubai Monday, May 04, 2009

The defence lawyer( Samir Jaafar) for a Dubai Sheikh ( Hasher Maktoum bin Juma Al Matoum, brother in law of H.H. Sheikh Mohammed bin Rashid Al Maktoum) being sued by an Iranian businessman over $1.9 billion property investments  on Monday rejected the lawsuit as baseless.

“All his allegations and the sums that he claims to have pumped into the company are unfounded,” lawyer Samir Jaafar told news agency AFP after the third hearing in the case.

Shahram Abdullah Zadeh has filed the $1.9 billion case against Sheikh Hasher Maktoum bin Jumaa Al-Maktoum and the Dubai-based real estate developer Al-Fajer Properties.

Zadeh insists he was the real owner and sole investor in Al-Fajer, which is registered under the name of Sheikh Hasher, a brother-in-law of Dubai’s ruler, Sheikh Mohammad bin Rashid al-Maktoum.

“There are surprises in the documents that we have presented to the court which will turn the case upside down,” Sheikh Hasher’s lawyer Samir Jaafar said, declining to elaborate.

“We believe that the lawsuit will be rejected after the court goes through the documents that we have presented,” Jaafar added.

Legal sources close to the case, asking not to be named, said the defence has charged that the sums which Zadeh says he invested in the company were in fact the “company’s money that he misused to appear as if it was his own”.

Zadeh, for his part, demands the “recovery of all material assets of Al-Fajer Properties“, according to legal documents obtained by AFP.

These include liquid assets and property, which are estimated at 7 billion dirhams ($1.9 billion), and 9 percent interest since the suit was filed.

His lawyer Salim al-Shaali, who asked the judge for time to study the defence document, said that at the next hearing on May 25 he will ask for an auditor to be appointed to look into the company’s accounts.

“The expert would decide who pumped capital into the company and … whether the defendants paid any money,” he told AFP.

Zadeh charges Sheikh Hasher made no investment in Al-Fajer and that he acquired the licence under the sheikh’s name only because Emirati law does not allow non-Gulf citizens to register real estate firms under their own names.

“For every dirham that Sheikh Hasher can show the court he has invested in Al-Fajer Properties, will give him the company and an extra $10 million bonus,” Shahram Zadeh told AFP after the latest hearing, which he did not attend

Shahram Zadeh said he started up the company from scratch, pumping in cash “as and when the company needed”, and that he only withdrew part of his initial investments after the company expanded from property sales.

“The Sheikhs claim I was an employee,” said Zadeh.

“My question to the court is what employee (can be) the sole investor, work for four years with absolute single authority signing billions of dirhams on cheques, contracts … but work without a salary or an employment contract?”

In addition to Sheikh Hasher, Zadeh is suing his daughter, Sheikha Maryam, a partner in the company, and son Sheikh Maktoum bin Hasher Juma Al Maktoum, who was made president of Al-Fajer after Zadeh was sacked in February.

Zadeh said he was detained by Dubai police after he was sacked and then held without charge for 60 days, and that his passport was confiscated and is still being held.

“I still don’t know why I was arrested,” he said.

The case comes as several executives from high-profile Dubai firms are being held on suspicion of embezzlement and as the once-booming regional business and tourism hub struggles to stave off the impact of the global economic crisis.

Dynasty Zarooni

Al Fajer Properties

GulfNews The first report about this case in the local UAE press

Shahram Zadeh against Al Fajer Properties Maktoum Hasher Juma Al Maktoum – Comment of the Month

April 10, 2009 comment from Salahudin

I am a lawyer & familiar with such disputes known as financial cases.

Its actually very simple, the judge has to appoint an Accounts Expert (Court Appointed Auditor), to examine the accounts of Al Fajer Properties, and it will be very clear if Sheikh Hasher Maktoum has invested anything. I believe the lawyer of Sheikh Hasher Maktoum, Sheikh maktoum Hasher & Al fajer will do their best to close the case before the court appoints an Expert to avoid the embaressement.

If Sheikh Maktoum Hasher Al Maktoum succeeds in closing the case without the court Auditor examining Al fajer accounts, then it will be a big loss to dubai justice system because it shows they are afraid the truth will come out!!!

Sheikh Hasher Maktoum should be smart and try to settle the case with Dr.Zadeh Shahram before it becomes a nationalembaressement for Dubai ruling family.

__________________________________________________________

April 10, 2009 comment from Tom

If the sheikhs win this case, it will be the end of foreign investor’s trust in dubai. This will be a test for dubai, is it really a safe & secure investment hub as they portray it???? Or the laws are not applicable to the ruling family?

__________________________________________________________

April 10, 2009 comment from Al Fajer Victim

This is going to be a test case for dubai. This will reveal the depth of the corruption & behind the scenes torture, illegal arrest, fabrication of cases, all to protect the few sheikhs like sheikh hasher maktoum & his well known crook son who just thursday threatened me in front of my wife that if I complain about al fajer “it will have very bad consequences, I don’t want you to disapear” Shame on you sheikh maktoum hasher, you are nothing but a thief with everyone.

Al Fajer Properties – April 8 , 2009 – Dubai court postpones 1.9 Billion Dollar case against Sheikh Maktoum Hasher bin Juma Al Maktoum, Sheikh Hasher Maktoum Juma Al Maktoum and Sheikha Maryam

DUBAI, Apr 08, 2009 (AFP) –

A Dubai court postponed on Wednesday a 1.9 billion dollar lawsuit by Shahram Abdulla Zadeh ( Iranian) gainst members of the ruling family over an allegedly lost property investment to give the defence time to prepare.

Lawyer Hussein al-Jaziri asked for a “long period of time to respond to the case,” but the judge set May 4 as the date for the next hearing.

No one represented the defence during the first hearing, on March 11.

Iranian Shahram Abdullah Zadeh claims he invested the 1.9 billion dollars as the sole capital of a company, Al-Fajer Properties

Under United Arab Emirates law, only UAE and Gulf citizens may register property firms, and ruling family member Sheikh Hasher Maktoum bin Jumaa al-Maktoum is listed as the owner.

“I was the sole investor. Al-Fajer Propertiesis my company. Sheikh Hasher’s only contribution has been the real estate licence as a sponsor,” he said in March.

Zadeh, who was sacked as company president last year, is demanding the “recovery of all material assets of Al-Fajer Properties,” according to legal documents obtained by AFP.

These include liquid assets and property, which are estimated at seven billion dirhams (1.9 billion dollars), and nine percent interest since the suit was filed.

“We have enough documents to prove he was the sole investor,” Zadeh’s lawyer Salem al-Shaali told AFP after the first hearing.

Sheikh Hasher is a brother-in-law of Dubai ruler Sheikh Mohammed bin Rashid al-Maktoum. Also named in the suit are his daughter, Sheikha Maryam, a partner in the company, and son Sheikh Maktoum, who was made president of Al-Fajer after Zadeh was sacked.

Their names were only made public on Wednesday.

Zadeh said he was detained by Dubai police at the time he was dismissed last year and held without charge for 60 days, and that his passport was confiscated and is still being held without explanation.

The case comes as several executives from high-profile Dubai firms are held on suspicion of embezzlement and as the once-booming regional business and tourism hub struggles to stave off the impact of the global economic slowdown.

ak/al

More about the case Al Fajer Properties
which must be seen also in relation to the pending case Dynasty Zarooni

Comment of the day

Comment by “Criminology Professor” to Al  Fajer Properties – April 8, 2009 – Dubai court postpones 1,9 Billion Dollar case against Sheikh Maktoum Hasher bin Juma Al Maktoum, Sheikh Hasher Maktoum Juma Al Maktoum and Sheikha Maryam

In criminology, state crime is activity or failures to act that break the state’s own criminal law or public international law. For these purposes, A “state” is defined as the appointed officials, the bureaucracy, and the institutions, bodies and organisations comprising the apparatus of the government. In this situation the sheikh is not alone, the role of the state as one of the possible perpetrators of crime whether directly or in the context of state-corporate crime must be examined.

One way of examining state crimes is to study the occurence of a trend by the state security forces, whether the state respects human rights in the exercise of its powers.

A classical situation is when, the state is directly involved in excessive secrecy and cover-ups, disinformation, and unaccountability which often reflect upper-class, royalty and nonpluralistic interests, and infringe human rights and the state laws. One of the key issues is the extent to which, if at all, state crime can be controlled. Often state crimes are revealed by an investigative news agency resulting in scandals but, even among first world democratic states, it is difficult to maintain genuinely independent control over the criminal enforcement mechanisms and few senior officers of the state are held personally accountable. When the citizens of second and third world countries which may be of a more authoritarian nature, seek to hold their leaders accountable, the problems become more acute. Public opinion, media attention, and public protests, whether violent or nonviolent, may all be criminalised as political crimes and suppressed, while critical international comments are of little real value.

In a state where there is dictatorship and reoccurence of State Crimes, it will result in fostering organized crime, corruption, and authoritarianism. In some third world countries, this political atmosphere has encouraged repression and the use of torture.

JUDGING THIS CASE AGAINST THE SHEIKHS:
THIS IS A CLASSIC EXAMPLE OF A STATE CRIME, WHERE THE STATE INSTITUITIONS BREAK THE RULE OF LAW TO SERVE THE ROYAL FAMILY MEMBERS

The Case Dynasty Zarooni – Dubai Prosecutors Rejected Bail of Kabir Mulchandani

source WallStreetJournal 7starsdubai

Dubai prosecutors Sunday rejected a bail application from Dynasty Zarooni’s Chairman Kabir Mulchandani who is being held by police on 450 million U.A.E. dirhams ($123 million) fraud allegations, according to documents seen by Zawya Dow Jones.

Mulchandani, who couldn’t be contacted by Zawya Dow Jones, has previously denied any wrongdoing.

Ayman Merdas, a lawyer for Global Advocates & Legal Consultants representing Mulchandani declined to comment when called by Zawya Dow Jones Monday.

Mulchandani applied for bail on March 11 but was refused March 22, according to the Public Prosecution document seen by Zawya Dow Jones.

The Dubai public prosecutor handling the Dynasty Zarooni case couldn’t be reached Tuesday.

-By Stefania Bianchi, Dow Jones Newswires, +9714 364 4967 Stefania Bianchi@dowjones.com

more about this case from Archive 7StarsDubai

Al Fajer Properties Investors asking Maktoum Hasher” where is our money” – Headlines from Sweden told – Maktoum Hasher Maktoum buys into Saab

source Sweden Press

by google translated version

Chinese Geely need money to buy Saab.

Shekh Maktoum Hasher Maktoum al Maktoum. GT can today reveal the name of a very likely co: Sheikh Maktoum Hasher Maktoum al Maktoum

More from the archive Al Fajer Propertie

critical discussion about the Saab Deal

and Saabunited.com

Al Fajer Properties Dubai Court Case : Anyone can sue anyone, whether they are from the ruling family or not,’ Tamimi said.

source REUTERS March 11, 2009

Dubai court began a hearing against three members of the emirate’s ruling family after businessman sought $1.9 billion in compensation for the alleged seizure of his firm.

The claimant, Shahram Abdullah Zadeh, a Dubai-based Iranian businessman and property owner, filed the civil suit, alleging that his business had been taken over by Sheikh Hasher Maktoum Al Maktoum, according to case documents obtained by Reuters.

The court handling the case against Al Fajer Real Estate and members of the Dubai ruling family began the trial but adjourned to April 8 after defendants did not attend.

‘We attended the session but the defendant did not attend and the session was adjourned to April 8,’ Salem Al Shaali, Zadeh’s lawyer from Al Shaali & Co, told Reuters by telephone.

Sheikh Hasher had sponsored Zadeh in line with the United Arab Emirates law which requires foreigners to have a UAE national as a partner or sponsor to carry out business activities, the documents showed.

Sheikh Hasher declined to comment by telephone or respond through email. His son and daughter could not be reached by telephone.

The suit is likely to draw wide attention as a test case for Dubai, home to many Western banks and a regional business hub.

Dubai has fashioned itself as a tourist destination and business-friendly centre for many international firms, and captured global attention by building palm-shaped islands in the sea and the world’s tallest building.

Last year, as Dubai’s booming real estate market reached dizzying heights, the emirate launched a high-profile anti-corruption campaign that saw the arrest of several well-known business figures.

But the prolonged detention of several Dubai property executives as part of the probe has been criticised by groups such as Amnesty International.

Zadeh accuses Al Fajer company, Sheikh Hasher, his son and his daughter, of involvement in the case, according to case documents. The case names the daughter, Sheikha Meryam, as a partner of the firm, and the son, Sheikh Maktoum, as a manager.

Zadeh alleged that Sheikh Hasher and Sheikha Meryam have ’seized all the company has from cash monies, movables, properties, and others’ in March last year, according to case documentation.

The seizure of the company occurred while Zadeh was held in custody of Dubai police, according to Zadeh.

‘I was arrested for 60 days on February 21, 2008 and until this day I don’t know what law I have broken, and I have not been charged with anything. I still don’t know why they have kept my passport for over one year,’ Zadeh told Reuters.

The chief of Dubai police, major general Dahi Khalfan Tamim, confirmed the arrest to Reuters by telephone and said that Zadeh was held on charges of bribery on order of the public prosecutor, charges that Zadeh denies. The public prosecutor could not be reached for comment.

Abdullah Zadeh’s lawyer, Salem Al Shaali, said he expected the case to be decided on its merits.

‘We haven’t yet seen anyone, whether from the ruling family or other, escaping the rule of law,’ he told Reuters.

Essam Al Tamimi, lawyer at Al Tamimi & Co. told Reuters by telephone that the judicial system in the UAE ‘is very independent from the government and the ruling family’.

‘Anyone can sue anyone, whether they are from the ruling family or not,’ Tamimi said.

Archive Al Fajer

Dubai – Arrest Warrant issued against Hilal Al Zarooni – The Case Dynasty Zarooni and Al Fajer Properties

Dubai: March 16, 2009, 23:54

source GulfNews

An arrest warrant has been issued against the senior executive of a well known real estate company, a senior public prosecutor told Gulf News on Monday.

Hilal Al Zarooni of Dynasty Zarooni Real Estate is “wanted and it’s a matter of time before the law enforcement officers bring him in for questioning,” the public prosecution official said. He didn’t say when exactly the warrant was processed.

Ayman Merdas, of Al Sharif Advocates and Legal Consultants, the law firm representing Hilal Al Zarooni and the company’s chairman, Kabir Mulchandani, said the investigation is ongoing but declined to comment whether Hilal Al Zarooni has been detained upon the arrest warrant or not.

Salem Al Sha’ali, the legal representative of a number of investors, said “My clients have lodged nearly 30 complaints worth around Dh300 million against the suspects& we have officially requested the public prosecution to arrest and question H.A.Z.”

“We also asked the public prosecution to question a number of developers to testify to the fact whether Kabri Mulchandani was authorised to sell their properties… .”

Earlier, both executives told Gulf News they were both “in the clear” and blamed the case of “nervous investors.”

Comment of the Week – to Al Fajer Properties Dubai

I am not a lawyer, but as a real estate investor I am familiar with the real estate license being registered in the name of a local because the laws do not permit a non UAE national to be the owner of a real estate company. Every single real estate company I know has done the same thing.

The big question is,

IF ZADEH IS SAYING IT SO OPENLY IN THE PUBLIC MEDIA THAT SHEIKH HASHER MAKTOUM HAS NOT INVESTED A SINGLE DIRHAM INTO AL FAJER PROPERTIES, WHY IS SHEIKH HASHER MAKTOUM NOT REPLYING? IF ZADEH IS NOT TELLING THE TRUTH SURELY THE SHEIKH SHOULD BE COMING FORWARD WITH A STRONG STATEMENT AND PROOF OF FUNDS HE HAS PAID INTO AL FAJER PROPERTIES!!!

BY KEEPING QUIET SHEIKH HASHER MAKTOUM AND AL FAJER PROPERTIES ARE CONFIRMING WHAT ZADEH IS SAYING THAT THE COMPANY BELONGS TO HIM AND SHEIKH HASHER MAKTOUM HAS NOT INVESTED A SINGLE DIRHAM INTO THE COMPANY!!!!!!!!!!!

I don’t know any of the parties involved. I fail to understand why they have taken over Al fajer Properties when zadeh was detained without any charges for 2 months???? wHY THE AUTHORITIES ARE NOT REPLYING ABOUT THE 2 MONTHS JAIL WITHOUT CHARGES??This is going to damage dubai’s reputation and will hurt the rest of the real estate market because at the end, dubai will be regarded as a city that investors do not have the basic security. So what is the difference between Dubai and Zimbabwe? Mugabe did the same to my parents’ farms.

Very sad, because it affects all our businesses.

Dear John, I am sure sheikh hasher maktoum is an honorable man in your eyes but sheikh hasher and zadeh have to be treated equally under the law or we have to accept Dubai is Zimbabwe

read more about ….. Al Fajer Properties

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Al Fajer Properties – Comment of the day

I started with Al Fajer Properties from day 1 under Dr. Shahram and saw how he invested his money, dedicated his time 24/7 and created a brand out of Al Fajer. Sheikh Hasher Maktoum is an old fashioned 65 year old who loves gossip and whispers.

All the Al Fajer staff witnessed how Dr. Shahram fought with Al Ahmadiah (sheikh hasher’s contracting company that was building the towers for al fajer), because Al Ahmadiah was not doing anything on site. That was damaging Al fajer Properties name and Dr. Shahram felt responsible towards the investors and thats what triggered sheikh hasher maktoum’s aggressive behaviour towards Dr shahram.

The son, Sheikh Maktoum Hasher Al maktoum, was a nobody. Even Sheikh Hasher always told us not to let him in the office! I remember sheikh maktoum hasher used to call Dr. Shahram’s secretary or the receptionist and request to book the meeting room to bring his friends and show off!!!

When Dr Shahram disappeared, we were told by sheikh maktoum hasher that the state security has taken him and he is never coming back!!! That was the begining of a series of illegal activity by sheikh maktoum hasher in the company, including changing documents, illegal sales of properties, threatening many staff members with state security arrests,…etc

Everyone in Al Fajer knows that Dr. Shahram was & is the owner of Al Fajer Properties. Sheikh maktoum hasher always uses his “uncles” name Sheikh Mohammed Bin rashid, the dubai ruler to threaten people.

The rest of the world is not stupid, somebody is locked up for 60 days, tortured, passport confiscated for a year, no charges against him, his business has been stolen by the brother in law of dubai ruler, the case he filed at the public prosecution is closed without an explanation.

Is this the fair, just society that sheikh mohammed bin rashid has envisioned in his Dubai Strategy? So the government is actively helping criminals? Why nobody dares to talk?

Al Fajer Employee
22. February 2009

The Network of Hasher Al Maktoum bin Juma AL Maktoum – Owner Al Fajer Group – or why is Al Fajer Properties an untouchable developer in Dubai

Hasher Maktoum bin Juma Al Maktoum owner of Al Fajer Group in Dubai is:

Board Member of the Dubai Executive Council whos members are:

http://www.arabdecision.org/show_func_3_12_5_0_5_9305.htm

http://www.arabdecision.org/list_cvs_3_12_5_0_5_10165.htm

Dubai Executive Council

• Chairman of Dubai Executive Council    (Mohammad Bin Rashed Al Maktoum)
• Deputy Chairman of Dubai Executive Council    (Ahmad Bin Said Al Maktoum)
• Board Member of Dubai Executive Council    (14  Cv′s available)  ( his name can be ind here)
• Secretary General of Dubai Executive Council    (Mohammad Abdallah Al Qarqawi)

• His Excellency Qadhi Said AL MUROOSHID
• His Excellency Mohammad Bin Ali AL ABBAR
• H.E Mr Qassim Sultan AL BANNA
• Mr. Khalifa Mohammad AL KHALAFI
• Sheikh Hashar AL MAKTOOM
• His Excellency Minister Mohammad Abdallah AL QARQAWI
• Mr. Hamad Sheikh Ahmad Hamad AL SHIBANI
• His Excellency Mattar Mohammad Ahmad AL TAYER
• Mr. Sultan Ahmad BIN SULAYEM
• Khalid Ahmad BIN SULAYYEM
• Ibrahim Mohammad BOU MALHA
• Khalfan Ahmad HREIB
• His Excellency Dr. Khalifa Mohammad Ahmad SULEIMAN
• H.E General Dhahi Khalfan TAMIM

Hasher Maktoum bin Juma Al Maktoum owner of Al Fajer Group in Dubai is:

Director of  Dubai Information Department

http://www.arabdecision.org/show_func_3_12_5_0_5_7454.htm#detail

Dubai Information Department    (Show Institution Details)

• Director of Dubai Information Department    (Hashar  Al Maktoom)
• Dubai Media Corporation
  • Chairman of Dubai Media Corporation    (Mohammad Bin Rashed Al Maktoum)
  • Board Member of Dubai Media Corporation    (9  Cv′s available)
  • Al Bayan Press, Printing and Publishing Establishment
    • Chairman of Al Bayan Press, Printing and Publishing Establishment    (Khalid Mohammad Ahmad)
    • Member of Al Bayan Press, Printing and Publishing Establishment    (4  Cv′s available)
    • Director General of Al Bayan Press, Printing and Publishing Establishment    (Sami  Al Qamzi)
    • Al Bayan Newspaper
      • Responsible Editor in Chief, Al Bayan Newspaper    (Hashar  Al Maktoom)
      • Executive Editor in Chief, Al Bayan Newspaper    (Khalid Mohammad Ahmad)
      • Director of Information Technology in Al Bayan Newspaper    (Faisal  Bin Haidar)
    • Al Usra Al Asriya Magazine
      • Executive Editor-in-Chief,Al Usra Al Asriya Magazine    (Sami  Al Riyami)
    • Al Emarat Al Yaum Magazine
  • Dubai Radio and Television
    • Chief Executive Officer of Dubai Radio and Television    (Hussein Ali Loutah)
    • Councelor in Dubai Radio and Television    (Ali  Jaber)
    • Director of Public Relations    (Adel Omar Mohammad)
    • General Manager of Dubai Radio and Television    (Ahmad Said Al Qaoud)
    • Councelor in Programs Producing and Buying Affairs    
    • EDTV
      • General Manager of EDTV    (Ali  Khalifah)
      • Deputy General Manager of EDTV    (Maha  Gargash)
    • One TV
      • General Manager of One TV    (Rashed  Al Mroushid)
      • Deputy Manager of One TV    (Najla′  Al Awadi)
    • Sama Dubai Television
      • General Manager of Sama Dubai Television    (Abdel Latif  Al Qarqawi)
      • Deputy Manager of Sama Dubai Television    (Ahmad  Al Mansouri)
    • Dubai Sports Channel
      • General Manager of Dubai Sports Channel    (Ahmad Abdallah Al Sheikh)
      • Deputy Manager of Dubai Sports Channel    (Rashed  Amiri)
    • Dubai 33
    • Dubai Business Channel
    • Dubai AM
    • Dubai Arabic FM
    • Dubai English FM
    • Dubai Production Center

 

 

and the reponsible editor chief of AL Bayan Newspaper – Government of Dubai

and last but nit least

the chairman of Tennis Emirates

http://www.tennisemirates.ae/pages/Home_page.php

Dynasty Zarooni Fraud Dubai – Some statements from Investors

 http://www.dnaindia.com/report.asp?newsid=1221052

Kabir Mulchandani, who was arrested in Dubai in connection with an alleged realty scam, is also alleged to have floated another scheme of three 40-floor buildings( Jumeirah Business Centre 7, 8,9 )  in Jumeirah opposite the Dubai Marina — the most posh locality of the Emirates.

Full page advertisements were run in papers, making him the largest advertiser of the Emirates during the period, said Mohammed Marzooq from Kerala. “He showed us the picture of a building with a podium, three-storeyed car parking and a complete floor for a departmental store. It was half complete and the rest of the 35 floors were to be built in the next one year”, Marzooq said.

Atul Patel, a UK-born Indian , a multinational from US, told DNA over the phone that he had “booked a 10,000 sq ft flat in the 35-floor building called Ebony Ivory at Jumeirah for 3.5 million dirhams.”

“I paid the entire amount because I was dealing with the company for some other work. During a vacation in Europe recently, I happened to meet someone who was unhappy with the project. On my return, I went to the site and found that I too had been duped royally,” Atul said.

When cornered by 12 investors, Marzooq said Mulchandani flew them to Nice (in France) in his jet and treated them to a cruise vacation. He showed them properties in Nice. Claiming them to be his own, he asked them to invest there for speedy returns.

“He convinced all of us to sign a cheque, promising that it wouldn’t be encashed till their return to Dubai. Upon arriving at Dubai we found that the cheque had already been encashed,” Marzooq said.

A complainant told DNA that Mulchandani threatened him with deportation due to his clout in the UAE.

Now it getting agressive in Dubai ? – Hunting complaining Investors – Dynasty Zarooni Fraud – Kabir Mulchandani hit back with a counterclaim

http://www.ft.com/cms/s/0/64f5823c-f945-11dd-90c1-000077b07658.html?nclick_check=1

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.

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.

Dynasty and Mr Mulchandani deny investor allegations of fraud and misrepresentation of the group’s property portfolio.

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.

He said: “Certain key investors who had issued post-dated cheques to us got caught in the financial trap. They could not pay.”

Mr Mulchandani said he suspected the investors whose cheques he alleges bounced – a criminal offence in Dubai – had made the accusations of fraud against him because they saw it as a way to recover money after the market fell.

Salem Al Shaali, who is representing investors claiming up to Dh280m from Dynasty, admitted some of their cheques had not cleared. But he said this was because his clients had decided not to honour the cheques because of their suspicions about Mr Mulchandani.

His clients had deposited cheques covering the money they owed, he added, showing that they had the ability to pay if their allegations against the company were satisfactorily addressed.

Hundreds of complaints have been made against Mr Mulchandani, but the initial claims at the heart of the case came from 10 individuals known as Dynasty’s “investment club”. Mr Shaali said: “Mr Mulchandani broke Dubai’s real estate laws by selling properties without a proper licence and misrepresenting construction progress at the buildings”.

Mr Mulchandani, an Indian national, said he was being well treated in custody but expressed frustration at the time taken to investigate a case in which he said he had “nothing to hide”. He is expecting a hearing this week over whether he can receive bail.

He said: “This is a wonderful country but … it is still gearing up to deal with these complaints, because this is the first time they have had a property meltdown.”

The Dynasty imbroglio is a further blow to confidence in Dubai as it scrambles to cope with the sudden end of a six-year property boom on which a good part of its modern-day wealth is founded.

More than 25 executives have been detained over the past year in anti-corruption investigations at state-linked property companies, while lawyers say more claims against private sector property developers are likely to emerge this year as prices collapse and funding dries up.

News from Dynasty Zarooni and Al Fajer Properties – I’m the victim’, says property tycoon

http://www.thenational.ae/article/20090211/BUSINESS/886702850/1051

Last Updated: February 11. 2009 10:28PM UAE / February 11. 2009 6:28PM GMT

Kabir Mulchandani, an Indian property tycoon detained by police in Dubai, says people who are accusing him of fraud are trying to get out of investments that turned sour because of the property downturn.

The chairman of Dynasty Zarooni is being held because more than 25 investors, with claims worth Dh280 million (US$76.2m), have accused him of fraudulently selling them property and running an illegal investment scheme, a lawyer for the investors said. Mr Mulchandani, 36, denies the accusations and says he is being targeted by a group of investors who are unable to meet their obligations as the property market deteriorates.

“I am the victim here,” he said. “After Lehman Brothers went bust the world changed… The system is being misused by certain individuals who are just wanting money and wanting to get out of commitments they have made that they are not able to fulfil because the market has turned.”

Mr Mulchandani said his case was likely to be a predecessor to a rash of similar cases caused by the decline in the property market. Dubai property prices have fallen by about 25 per cent since hitting a peak last year.

“It is going to turn into a bloodbath of attacks by investors who just want to get out of obligations,” he said. “Do you think I would be sitting here had the market been OK?”

Dynasty Zarooni, a joint venture between Mr Mulchandani and Hilal al Zarooni, an Emirati businessman, is one of the highest profile property companies to come under scrutiny by the authorities since the property market began to fall late last year. The company was the top newspaper advertising buyer in the Emirates last year, spending $14.6m and topping the likes of Nakheel and Emaar Properties, according to figures from the Pan Arab Research Centre. Its advertising spending ranked 10th across the Middle East.

The company, founded in 2005, is a property resale and marketing operation. It has bought entire buildings off-plan from developers with a bulk discount and re-sold floors and units to investors at a premium. Then, as a service to these core investors, it would market the buildings prominently around the country to facilitate their resale to retail buyers. Usually, Dynasty Zarooni would play a middleman role for the first payments and then contracts would be issued between the buyer and the developer, cutting the company out of the deal.

It sold 29 buildings in this way last year, according to executives. The business was profitable, with Mr Mulchandani planning a foray into New York City property before his arrest.

He lives in the Emirates Hills development in Dubai.

A group of investors, however, allege Mr Mulchandani built his company by misleading investors, according to Salem al Shaali, a lawyer representing several investors.

One of the allegations is that Dynasty Zarooni displayed one building and sold another.Investors said they were shown buildings that were several storeys high, and told that they were the Ebony and Ivory towers. They bought dozens of units, and in some cases several floors, of the buildings. The buildings were also misrepresented in advertising, the investors say.

One advertisement in a daily newspaper on July 23 last year showed 24 photographs of “round the work” progress on the Ebony and Ivory projects. A caption for the photographs reads: “Shot at location on 10th June 2008. Ebony & Ivory – Jumeirah Lakes Towers.”

 In fact, the images showed other buildings in the Jumeirah Business Centre complex that were further advanced in construction.

Work on the Ebony and Ivory towers plots still has advanced only to shoring and piling. A contractor has yet to be chosen for the Dh2 billion project.

The Picture shows the construction Status of today 2009, Ivory Tower ( or named Juemirah Business Centre 9, Developer Al Fajer Properties, Jumeirah Lake Towers Dubai)

Al Fajer Properties, the developer of Ebony and Ivory towers, said a construction contract would soon be signed for the towers, which it said were to be finished between next year and 2012.    An Al Fajer spokesman declined to comment on the issue.

Mr Mulchandani said the advertisements were meant to show the larger Jumeirah Business Centre complex and depict Al Fajer as a hard-working developer.

“I don’t believe it is misrepresentative in any way,” he said.

He said the company had sold the entire building in April and that the investors involved in claims against him had signed contracts that detailed which plot of land the buildings were to be built on.

Claims have emerged involving other projects that were bought and resold by Dynasty Zarooni, including the Sheffield Classique and Al Qoraishi Tower, according to Mr al Shaali.

Imran Karim, the son of an investor taking action against Mr Mulchandani, said his father, Abid Karim, was sold units in the Classique and Al Qoraishi Tower under the impression that Dynasty Zarooni was the developer.

Mr Mulchandani said he never represented himself as a developer.

Officials from Sheffield Real Estate and Baiti Properties Development, the developer behind the Al Qoraishi Tower, declined to comment.

Another allegation against Mr Mulchandani is that he created an illegal “investment club” where 12 investors were invited to pay Dh300,000 a month for 12 months for a guaranteed return of up to Dh1m a month. After six months, they expected to redeem their investments, but Mr Mulchandani did not pay, investors said.

One such investor, Mohammed Arif, who also invested with Dynasty Zarooni in several properties, said he had Dh25m with Mr Mulchandani and projects sold by Mr Mulchandani.

“I invested a lot of money with him,” he said. “I fear the money is gone.”

Mr Mulchandani said the Dh300,000 was actually a membership fee for 12 investors who bought from him in bulk. The fee would give the members the first right of refusal to buy up to 5 per cent of buildings that Dynasty Zarooni acquired, as well as use of the Dynasty Zarooni offices for resales. The fee also contributed to advertising, he added.

Marwan bin Ghalita, the chief executive of the Real Estate Regulatory Authority (RERA), declined to comment on the accusations against Dynasty Zarooni. In November, RERA stated that there were no complaints against Dynasty Zarooni, after allegations in two Indian publications that the company had sold projects while representing to investors that they were buying another project.

Officials from the Dubai Public Prosecution declined to give details on the cases, but confirmed staff members were investigating the claims.

Dubai Fraud alligations – The Case Dynasty Zarooni: Complaint at Dubai Police now also against Al Fajer Properties

original published Financial Times

http://www.ft.com/cms/s/0/2af58370-e013-11dd-9ee9-000077b07658.html?nclick_check=1

 

Dubai Police are investigating fraud allegations against the chairman of one of Dubai’s largest private real estate companies as dozens of aggrieved investors claim he defrauded them of more than $100m.

Kabir Mulchandani, the chairman of Dynasty Zarooni, was arrested last week on allegations of fraud and is helping with inquiries, police officers told the Financial Times.

At least 10 members of Dynasty Zarooni’s ”investment club”, which last year promised vast profits from the company’s preferential access to real estate deals, have lodged complaints against Mr Mulchandani, an Indian national, his Emirati business partner, Hilal Al Zarooni, their joint venture Dynasty Zarooni, and two other employees.

Investors say that Mr Mulchandani in March received subscription fees of Dh300,000 a month from 12 members. He promised them returns of Dh1m a month after six months, or Dh6m, in September, they say.

One British loser says he was encouraged by initial profits made by another club member, who had reinvested the proceeds into the scheme rather than taking the cash.

The fraud allegations weigh further on Dubai’s financial hangover as its six-year property boom fizzles out, with investor confidence hitting rock bottom as people are marooned in an illiquid, declining market while developers are hamstrung by financing difficulties.

More than 25 executives have been detained in an anti-corruption investigation at state-linked property companies. None have gone to trial yet, but the arrests have had an impact on investor confidence in Dubai.

News of the complaints against the chairman could raise concerns among other investors in Dynasty Zarooni’s claimed Dh21bn real estate portfolio.

Mr Zarooni denied any participation in, or knowledge of, a fraudulent scheme. ”One hundred per cent I deny this, there is nothing illegal whatsoever,” he said.

Mr Mulchandani, who has been detained but is seeking bail, could not be reached for comment. He denied any wrongdoing in a local press interview last week.

Lawyers say more than 100 other investors are preparing cases against Dynasty Zarooni over misrepresentation during the sale of its real estate projects.

One aggrieved investor, who in May placed a 20 per cent deposit on an apartment in Ebony Tower 1, opposite the Dubai Marina, for Dh650,000, yesterday lodged a complaint with the police against Dynasty Zarooni and their development partners, Al Fajer Properties, for allegedly misleading him about the progress made on the building’s construction, thereby raising the supposed value of the property. ”I have been cheated and am very distressed,” he said.

The cases, if they go to trial, could seek the recovery of hundreds of millions of UAE dirhams, said Salem Shaali, managing partner at Al Shaali & Co, which is representing the victims of the alleged fraud.

This could develop into one of the UAE’s largest fraud cases if other individual investors in Dynasty Zarooni come forward, he said.

Copyright The Financial Times Limited 2009

Ebony 1 Tower is a project by Al Fajer Properties within the Master Development Jumeirah Lake Towers. Ebony 1 Tower is also known under the name Jumeirah Business Centre 8 or Jumeirah Business Centre 9 ( Ivory Tower ), Developer Al Fajer Properties Jumeirah Lake Towers. All in the Master Development Jumeirah Lake Towers named Towers , Jumeirah Business Centre, total 9 Towers, are projects by Al Fajer Properties.  The Project has been launched and sold since December 2005 by Al Fajer Properties. Today 2009, no Tower of total 9 Towers is completed,only a part of them under construction,  the completion of this towers ( Phase 1 = 5 Towers) was promoted by Al Fajer Properties for December 2008.

Latest status of Plot G3 / named Jumeirah Business Centre 9 by Al Fajer Properties  or  also named Ivory Tower

http://www.skyscrapercity.com/showthread.php?s=5a50ee4f54171eaf6c2722678b8379c8&t=290912&page=18

 

 

Dubai Dynasty Zarooni Fraud Allegations Widen,Bail At AED400M

http://www.zawya.com/Story.cfm/sidZW20090124000023/%3D%20Dubai%20Dynasty%20Zarooni%20Fraud%20Allegations%20Widen,Bail%20At%20AED400M/

By Stefania Bianchi         Of ZAWYA DOW JONES         DUBAI (Zawya Dow Jones)–Dubai’s public prosecution has raised the bail to 400 million U.A.E. dirhams ($108 million) for Dynasty Zarooni’s Chairman Kabir Mulchandani, who is being held by police on fraud allegations, as more aggrieved investors lodge complaints, officials said.         Mulchandani, whose mobile phone was turned off when called by Zawya Dow Jones Thursday, has previously denied any wrongdoing.         An official at the public prosecution told Zawya Dow Jones that Mulchandani is being held on allegations of “fraud and embezzlement” and that he would have to pay the full bail amount in order to be released.         According to lawyers at Al Shaali & Co., one of a number of Dubai-based law firms acting on behalf of the investors pursuing Mulchandani, the cases against the Indian businessman and Dynasty Zarooni involves projects in Dubai and Abu Dhabi worth more than AED5 billion.         “We’re currently handling about AED500 million worth of cases,” Said Al Akkad from Al Shaali & Co. said Thursday.         The law firm says the final value of cases against Dynasty Zarooni could rise much higher as other investors involved in Dynasty Zarooni’s apparent AED21 billion real estate portfolio come forward.         “There are a lot more investors out there who want to file complaints against Dynasty Zarooni. The whole process takes a long time,” said Al Akkad.         Mulchandani was arrested by police in early January and has since been referred to the public prosecution. Mulchandani’s bail was set at AED76 million when he was first arrested.         Hilal Al Zarooni, Mulchandani’s local partner in Dubai, referred Zawya Dow Jones to his lawyers Global Advocates & Legal Consultants when called. Global, who are also representing Mulchandani and the company Dynasty Zarooni, declined to comment on the case.         COMPLAINTS         Investors at six of Dynasty Zarooni’s developments worth approximately AED6.35 billion have so far lodged complaints with the police, according to Al Shaali & Co.         The complaints so far refer to property at the company’s Ebony & Ivory, Berlin Tower, K Hotel, Panoramic Heights, Sheffield Classique and Al Quorashi Tower developments. The cases include the taking of deposits and installment payments without depositing the money into an escrow account, the issuing of contracts worth just AED1 after the full value of the property has been paid and the misrepresentation of property during the sale.         Some investors at the Ebony and Ivory project in Dubai’s Jumeirah Lake Towers district have also lodged a complaint with the police against Dynasty Zarooni for allegedly misleading them about the progress made on the building’s construction. Prominent advertising campaigns in Dubai showed pictures of the Ebony and Ivory real estate project under construction 24 hours a day, but a visit to the site by Zawya Dow Jones revealed that no work was underway.         In an advertising campaign published in local media last year the company said that as a company it had earned AED20 billion in revenue, as well as AED6 billion for its investors.         Lawyers say Mulchandani is also being investigated for allegations that he conned a small group of wealthy investors into pledging large sums of money with the promise of a hefty monthly return.         Investors interviewed by Zawya Dow Jones say Mulchandani received subscription fees of AED300,000 a month from 12 members of the so-called “investment club”. Mulchandani promised a return of a million dirhams a month after six months after investing their money in Dubai real estate projects.         The investors say Mulchandani has so far failed to deliver any returns, or their initial capital.         By Stefania Bianchi, Dow Jones Newswires; +971 4 3644967; stefania.bianchi@dowjones.com         (Majdoline Hatoum in Dubai contributed to this article.)         Copyright (c) 2009 Dow Jones & Co.         Click here to go to Dow Jones NewsPlus, a web front page of today’s most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=CqhgwHGrhVjWVDlKy6lCLA%3D%3D. You can use this link on the day this article is published and the following day.         (END) Dow Jones Newswires         January 24, 2009 03:54 ET (08:54 GMT)

We proudly double confirm: Dubai Police Arrest Dubai Dynasty Zarooni Fraudsters

WE have  complaint and complaint, running around saying  ” please  hear us – they are Fraudster” – nobody wants listen to us. At least they said our complaints are criminal. And now ????????

http://www.khaleejtimes.com/DisplayArticle08.asp?xfile=/data/theuae/2009/January/theuae_January177.xml&section=theuae

DUBAI – 10, January 2009

Dubai Police have arrested a syndicate of tricksters of India origin, who have been operating in pretext of being real estate developers.

 The Indian national arrested are Kabir Mulcandani, a UAE national Hilal Al Zarouni and two other employees of ‘Dynasty Zarouni’ a company located in Jebel Ali for issuing bouncing cheques to different nationalities mainly Indians.

Colonel Khalil Al Mansouri, Director of General Department of Criminal Investigation confirmed the arrest to Khaleej Times on Thursday.  The officer said the fraudsters are in police custody and assisting in investigations, adding that they will then be referred to the Dubai Public prosecution for further action.

Police sources said that they had received more than forty complains of different fraud cases against the suspects at various police stations and all cases were then referred to the General Department of Criminal investigation. Rajish and Alkopatra used to work as Finance Managers for the company.

While Mulchandani and his accomplice used to convince ‘potential’ investors that they were licensed to invest money and were a real estate developers.  They called on people to invest Dh 300, 000 every month and after paying 6 installments, the investor would get Dh1 million in return.

However, after the investors paid all the installments, Kabir did not show up but went into hiding, until police smashed the racket upon their arrest.

Salim Al Sha’ali, a lawyer for the suspects, told Khaleej Times that in order to convince their victims, the company announced massive media advertisements and introduced websites stating that they had successfully invested in development of real estate projects in the UAE.

The company claimed that their total investments reached Dh40 million realizing a revenue of Dh2.8 billion.

amira@khaleejtimes.com

all related reports 2008 – 2009 about Dynasty Zarooni:

http://7starsdubai.wordpress.com/?s=Al+Fajer+Properties

http://7starsdubai.wordpress.com/?s=Dynasty+Zarooni

Business Partner of Al Fajer Properties – Chairman Dynasty Zarooni arrested in Dubai

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dynasty Zarooni Chairman – Criminal Business Partner of Al Fajer Properties Dubai – arrested

http://www.bi-me.com/main.php?id=29498&t=1&c=33&cg=4&mset=

UAE. The head of a Dubai-based real estate firm has denied reports that he had been arrested on allegations of fraud.

Kabir Mulchandani, Chairman of property investment consultant Dynasty Zarooni, said in an interview for Gulf News there was no police arrest warrant against him.

“I know some complaints have been lodged with the police by some people against our firm but these people gave cheques that bounced. They have no legitimate reason to complain,” he explained over the phone.

He said the company was “in good shape.”

Company President Hilal Al Zarouni said the company is “functioning properly”. Both executives said they didn’t know if the police were investigating the complaints.

Lawyer Salim Al Sha’ali, who represents a number of complainants, said the complaints are related to an alleged fraud scheme.

“We have been studying the legalities of the case… and we believe that there is a supposed crime of conning people out of money,” he said.

The Federal Penal Code and the property laws issued lately are the legal grounds in this case, argued the lawyer. Sources said the complaints involve some 30 investors with at least US$1 million each invested with Dynasty Zarooni.

However, Mulchandani denied the accusations and said he has “all the documents that support our position that those people have reneged on their commitments”.

Reports yesterday claimed clients said they paid AED 300,000 per month for which Mulchandani promised a return of AED 1 million a month after the first six installments. But Kabir Mulchandani said that the montly payment was a fee for investors to secure first refusal on properties sold by Dynasty Zarooni at pre-launch prices, an average discount of between 2% and 5%. And he insists no returns were ever guaranteed.

“There is not a single document, email, a fax, an SMS, that anybody can produce in Dubai or elsewhere in the world that in any way represents that we guaranteed any form of return,” he said.

He added that many investors had actually made far more than the guaranteed return he is claimed to have given, despite the slump in the property market.

He said: “This is a case of people having a situation where they can’t meet their obligations, which is unfortunate, but they shouldn’t have over-traded. You can’t buy what you can’t pay for.”

He said those making the complaints against him had bounced post-dated cheques given to the company for both the membership fee and for the properties they purchased.

Mulchandani had left India for Dubai where he set up Dynasty Zarouni, to cash in on Dubai’s booming real estate market.

Kabir Mulchandani is also the founder of Baron International, the Mumbai company that pioneered cheap colour TVs and music systems under the brand names Aiwa and Akai, a firm which came under scrutiny from the DRI and Enforcement Directorate in India.

Dynasty Zarooni markets ready-to-move in properties constructed by Dubai real estate company Al Fajer. The firm advertises these properties on his website and invites NRIs to invest money.

Al Fajer is known for its projects in Jumeirah Business Centre 1 and 2 apart from various projects at Jumeirah Lakes and Jumeirah Island.

Dubai’s Real Estate Regulatory Authority (RERA) is probing the company’s operations after nearly 30 NRIs from India, Russia and UK complained online that he had misled them by showing a different property and selling them another

RERA authorities are reported to have told Indian newspapers that the firm had also not followed the local rule of depositing sale proceeds of real estate properties into a government-shared escrow account.

One particular complaint cites how Mulchandani allegedly sold apartments in a three-tower complex, showing the two completed towers as the properties that were for sale but allotting ownership documents of the third tower which has yet to come up.

Speaking to Mumbai Mirror RERA’s head of legal cell, Imad Hussein, is reported as saying: ”We have received complaints of 30 investors from India, Russia and the UK. The company Dynasty Zarouni offered real estate properties at half the market price.

“It also allegedly lured investors by misrepresenting a different property in the name of another. Each buyer has invested at least US$1 million with the firm.”

According to Hussein: “We have invited all investors with similar complaints through advertisements in local newspapers to come forward, and have assured them that RERA will play an active role in safeguarding their money under law number 8 in line with the directives of Dubai’s ruler Sheikh Mohammed.”

Law No.7/2006 Concerning Land Registration in the Emirate Dubai

Law No.7/2006 Concerning Land Registration in the
Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai
Having considered the Federal Law No. 5/1985 promulgating the Civil
Transactions Law and its amendments;
the Federal Law No 11/1992 promulgating the Civil Procedure Law and its
amendments;
the Local Law No 7/1997 concerning Land Registration Fees; and
the Local Decree concerning the Formation of Land Affairs Committee of the
year 1960;
do hereby promulgate the following Law:
Chapter One
Title and Definitions
Article (1)
This Law shall be cited as “The Land Registration Law of the Emirate of Dubai
(No 7/2006)”.
Article (2)
In this Law, the following words and terms shall have the respective meanings
assigned to each of them, unless the context requires otherwise:
The UAE :
the United Arab Emirates.
The Emirate:
the Emirate of Dubai.
The Government: the Government of Dubai including any of its
Departments, Authorities or Public Corporations.
The Ruler : His Highness The Ruler of the Emirate of Dubai.
The Department: the Department of Lands and Properties.
The Head: the Head of the Department.
The Director: the Director General of the Department.
Land anything of a permanently fixed nature which cannot
be removed without damaging or altering its form.1
Rights over Land: any principal or accessory rights over Land.
1 The original Arabic word is “‛aqār” which literally means immovable, the equivalent of French
immeuble. The underlying concept of “landed property” may also be expressed by the term “real
estate”.
Land Register: a collection of records kept by the Department in
written or electronic form in an electronic register,
detailing the description of the registered Land, its
location and the rights over it.
Land Unit: any plot of Land and all that is located thereon such
as buildings, plants or otherwise, situated in one
Land Area without being separated from its other
parts by any public or private property and without
any part of it having a right or an encumbrance which
its other parts do not have.
Land Area: a group of Land Units demarcated by principal roads
or fixed and clear signs with an accredited name and
a distinctive number in accordance with the practice
of the Department.
Person: a natural or a legal person.
Chapter Two
Scope of Application and Right of Ownership
Article 3
This Law shall apply to Land situated in the Emirate.
Article 4
The right to own Land in the Emirate shall be restricted to citizens of the
United Arab Emirates, citizens of the Cooperation Council for the Arab States
of the Gulf, the companies totally owned by any of the foregoing, and public
joint stock companies. Foreign Persons may, subject to the approval of the
Ruler, be granted in certain areas the following rights:
(a) The right to acquire absolute ownership of Land without restrictions as
to time.
(b) The right to acquire usufruct or leasehold of Land for a period not
exceeding 99 years.
Chapter Three
General Provisions
Article (5)
The originals of documents and judicial decisions in pursuance of which
registration is made shall be kept in the Department, and shall not be moved
outside its premises. Interested parties, judicial authorities or experts
appointed by them, as well as competent committees may have access to
such originals and obtain a certified copy thereof in accordance with the
provisions of this Law.
Chapter Four
Jurisdiction of the Department
Article (6)
The Department shall have exclusive jurisdiction to register the rights over
Land and the leaseholds mentioned in Article 4 of this Law. For this purpose,
the Department may do any of the following:
(1) determine the areas to be surveyed or re-surveyed and certify the
maps drawn therefor;
(2) prescribe rules in relation to surveying and inspection, as well as in
relation to issuance of maps relating to Land Units;
(3) prepare model forms of contract relating to real estate transactions;
(4) prescribe rules concerning organizing, archiving and destruction of
documents;
(5) prescribe rules in relation to using computers in storing and recording
data;
(6) lay down rules in relation to regulating and keeping a register of real
estate brokers;
(7) prescribe rules in relation to evaluating Land;
(8) lay down rules in relation to voluntary sales of Land by public auction
and supervision of such sales;
(9) determine the fees payable for services rendered by the Department;
and
(10) establish branches of the Department as the Director may deem
appropriate.
Chapter Five
The Land Register
Article (7)
A Land Register shall be maintained in the Department to record all rights
over Land and any changes that might take place in respect of them. This
Register shall be conclusive evidence against all and everyone unless it is
proved to be the result of fraud or forgery.
Article (8)
Subject to the provisions of Article (7) of this Law, all electronic records shall
have the same weight of evidence as that of their hard copy written originals.
Chapter Six
Registration
Article (9)
All transactions that create, transfer, change or cancel rights over Land shall
be recorded in the Land Register and final judgments confirming those
transactions shall also be likewise registered. No transaction shall have any
effect unless registered in the Land Register.
Article (10)
Any undertaking to transfer a Right over Land shall be limited to an obligation
to pay compensation if the obligor is in breach of his undertaking, whether the
undertaking contains a provision to pay compensation or not.
Article (11)
If the estate of a deceased contains Rights over Land then the certificate of
inheritance shall be registered in the Land Register and disposals by any heir
of any of these rights shall not be effective or recognized against third parties
unless registered in the Land Register.
Article (12)
The Department may for the purpose of settlement entertain applications for
registration submitted by Persons in possession of Land that is not registered
in their names.
Chapter Seven
Alterations or Corrections of Records in the Register of Land
Article (13)
The Department may, on the application of an interested party or on its own
initiative with notification to those concerned, correct clerical errors in the
records of the Land Register.
Article (14)
In co-ordination with the relevant authorities, the Department shall update its
records of Land Units and of what is located thereon such as buildings, plants
or otherwise.
Chapter Eight
The Maps
Article (15)
(1) For the purpose of the registration of Land Units and Land Areas, the
following maps shall be relied upon:
(a) typographic master map;
(b) map of Land Unit; and
(c) map of Land Area.
(2) Each Land Area shall have its own separate map indicating the Land
Units located on it and the numbers thereof.
(3) Each Land Unit shall have its own separate map indicating its site,
boundaries, width and length, area, its features, constructions located
on it and the numbers given for its neighboring units.
Chapter Nine
Dividing and Merging
Article (16)
If the dominant Land Unit is divided up, the right of easement shall remain in
existence in favour of each part of it, provided that that does not increase the
burden to the servient Land Unit. However, if the right benefits only some of
such parts, the owner of the servient Land Unit may apply to the Department
for the termination of the right in respect of the other parts.
Article (17)
If the servient Land Unit is divided up, the right of easement shall remain in
existence over each part of it. However, if the right is not in fact used over
some of such parts, and it is not possible to use it over those parts, the owner
of each part thereof may apply to the Department, in accordance with the
provisions of this Law, for the termination of the right in respect of his part.
Article (18)
Easement rights cease to exist by the acquisition of the dominant and servient
Land Units by the same owner.
Article (19)
If a Land Unit which is encumbered by an accessory Right over Land is
divided into two or more Land Units, then each such new Land Unit will be
encumbered by the whole accessory Right over Land. The new owners may
agree with the beneficiary of the accessory Right over Land for the division of
it in such way so that each new Land Unit will be encumbered by only part of
it, to be determined by mutual consent.
Article (20)
If two Land Units merge and one of them is encumbered by an accessory
Right over Land while the other is not, then the accessory Right over Land
shall extend on the whole of the new Land Unit without the approval of the
merger by the beneficiary of the accessory Right over Land. However, if each
of the two Land Units is encumbered by an independent accessory Right over
Land, then the beneficiary of each such accessory Right over Land must
approve the merger.
Article (21)
Any alteration in the Land Unit by dividing or merging shall be registered in
the Land Register.
Chapter Ten
Ownership Documents.
Article (22)
The Department shall issue documents relating to Rights over Land on the
basis of the actual records of the Land Register.
Article (23)
Without prejudice to the provisions of any other law, apartment buildings and
multi-story buildings shall be treated as a single Land Unit and shall have one
record in the Land Register to be supplemented by records stating the names
of the owners of the apartments, stories and common parts.
Article (24)
(1) Ownership documents mentioned in Article (22) of this Law are
conclusive evidence of the Rights over Land contained therein.
(2) In the Land Unit record shall be set out any conditions, promises or
restrictions concerning Rights over Land and other obligations.
Chapter Eleven
Final Provisions
Article (25)
Provisions of the Federal Civil Transactions Law No. 5/1985 and its
amendments shall apply to all matters not provided for by this Law.
Article (26)
(1) Any agreement or transaction made contrary to the provisions of this
Law shall be null and void, as shall also be null and void any
agreement or disposal made with the intention to contravene the
provisions of this Law
(2) The nullity of such agreement or disposal may be invoked before the
Court by every Person having an interest, as well as by the
Department, or the Public Prosecution, and such nullity may also be
ordered by the Court on its own initiative.
Article (27)
The Decree dated 6 November 1977 concerning Civil and Criminal Cases in
Respect of Transactions Relating to Disposals of Lands in the Emirate of
Dubai shall be repealed.
Article (28)
The Head of the Department shall issue all the necessary regulations,
decisions, orders and instructions for the implementation of the provisions of
this Law.
Article (29)
This Law shall be published in the Official Gazette and come into force as of
the date of its publication.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on:
13 March.2006 AD
13 Safar 1427 AH

Government of Dubai Dubai Lands Department Law No.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government of Dubai

Lands Department

Draft Law No. 8 of 2007

Concerning Real Estate Development Trust

Accounts in the Emirate of Dubai

Draft Law No. 8 of 2007

concerning Real Estate Development Trust Accounts in the Emirate of Dubai

We, Mohammed bin Rashid Al Maktoum, the Ruler of Dubai,

After perusal of Federal Law No. 5 of 1985 in respect of Civil Transactions, as

amended;

Law No. 7 of 2006 in respect of real property registration in the Emirate of Dubai; and

Law No. 3 of 2006 specifying the areas where non-UAE nationals may own real

properties in Dubai,

Do hereby issue the following Law:

Chapter One

Definitions and General Provisions

Article 1

This Law shall be named “Law No. 8 of 2007 concerning Real Estate Development

Trust Accounts in the Emirate of Dubai

Definitions

Article 2

In the application of this Law, unless the context requires otherwise, the following terms

and expressions shall have the meanings as set out opposite each of them:

The Emirate

 

 

: The Emirate of Dubai

Department

 

 

: The Land Department

President

 

 

: The President of the Department

Director

 

 

: The General Director of the Department

Register

 

 

: The Register prepared at the Department to register

developers

Trust Account

 

 

: The bank account of the real estate project in which the

amounts received from off-plan units buyers or the project

financiers will be deposited.

Trustee

 

 

: The financial institution or bank approved by the Department

to manage a trust account.

Competent Authorities

 

 

: The government authorities which grant licenses to

developers.

Developer

 

 

: A natural or corporate person licensed to buy and sell real

properties for development purposes. The term shall include

the master developer and sub-developer.

Real Estate Development

 

 

: The construction of multi-storey buildings or complexes for

residential or commercial purposes.

Unit

 

 

: An allocated part of the property sold by the developer to

third parties.

Article 3

The provisions of this Law shall apply to developers who sell off-plan units in real estate

development projects in the Emirate and, in consideration, receive payments from

buyers or financiers.

Article 4

A special register to be named “The Developers Register” shall be prepared at the

Department. The names and particulars of developers licensed to carry out real estate

development activities in the Emirate shall be recorded in the said register. No

developer may carry out the said activities unless it is registered in the said register and

licensed by the competent authorities pursuant to regulations issued in this regard.

Article 5

After obtaining a written permit from the Department, a developer may advertise in local

or foreign media or participate in local or foreign exhibitions to promote selling off-plan

units in the Emirate. The Director shall issue the resolutions as required to regulate the

requirements for advertising in the media or participating in exhibitions.

Chapter Two

Creating a Trust Account

Article 6

- A developer wishing to sell off-plan units must apply to the Department to open a

trust account. The application should be accompanied with the following:

1. Trade license and Dubai Chamber of Commerce and Industry membership

certificate;

2. Title deed of the plot to be developed, if any;

3. A copy of the contract between the master developer and the sub-developer;

4. Architectural designs and preliminary engineering plans approved by the

competent authorities and the master developer;

5. A financial statement of the costs, revenues and expenditure of the project

certified by a chartered auditor;

6. An undertaking by the developer to commence the project construction works

after obtaining the master developer’s approval to sell off-plan units;

7. the sale contract form between the developer and the buyer.

- The Department shall issue its approval to the developer to open a trust account if

the above documents are provided, otherwise the Department shall require the

developer in writing to complete the documents or provide the required information.

Article 7

The trust account shall be created under a written agreement between the developer

and the trustee. Under the said agreement, the amounts paid by buyers of off-plan units

or received from the financiers shall be deposited in a special account to be opened in

the name of the real estate project.

The said agreement shall set out the terms for managing the account, the rights and

obligations of the contracting parties and other terms and conditions. A copy of the

contract shall be lodged with the Department.

Article 8

The Department may add a note regarding the purchase agreement between the

master developer and the sub-developer in the record of the plot owned by the master

developer. Further, the buyer of an off-plan unit may apply to the Department to add a

note regarding the purchase agreement entered into with the sub-developer in the

record of the plot on which the project is to be constructed.

Article 9

Subject to Article 4 of Law No. 7 of 2006 concerning real property registration in the

Emirate of Dubai, sole proprietorships or companies may obtain a license from the

competent authorities to carry out real estate development in the Emirate in accordance

with the requirements and regulations in this regard.

Chapter Three

Management of the Trust Account

Article 10

1. A trust account shall be opened in the name of the project and shall be used only

for the purposes of developing the real estate project. The amounts deposited in

the said account may not be attached in favor of creditors of the developer.

2. A developer carrying out several projects should open an independent trust

account for each such project.

Article 11

The Department shall prepare a register includes names of financial institutions and

banks who act as trustees. A trustee should be proficient in managing trust accounts.

The agreement between the Department and the trustee shall set out the duties of the

trustee and the terms under which the trust account is managed.

Article 12

The trustee should provide the Department with periodical statements of the revenues

and expenditure of the trust account. The Department may assign an auditor to audit

the statement and data. Further, the Department may at any time require the trustee to

provide it with such information or data as it may deem necessary.

If the Department finds any violation of the provisions hereof or the executive

regulations issued hereunder, it shall advise the trustee of such violation in writing and

request it to rectify the same within a specific period of time and advise the Department

in writing of such rectification.

Article 13

The depositors or their representatives may inspect the accounting records related to

them and request copies thereof. Representatives of the official authorities may also

inspect the records and obtain copies thereof.

Article 14

If the developer mortgages the project in order to obtain a loan from financing

institutions or companies, the developer should deposit the mortgage amount in the

trust account, and such amount shall be disposed of in accordance with the provisions

of this law.

Article 15

1. A trustee should withhold at least 5% of the trust account deposits after the

developer obtains the completion certificate. Such withheld amounts shall be

paid to the developer only one year after the units are registered in the names of

the buyers and title deeds are issued in their names.

2. In the events of unforeseen circumstances resulting in the non-completion of the

project, the trustee should, after consultations with the Department, take

measures as required to maintain the interests of depositors.

Chapter Four

Penalties

Article 16

Any person who:

1. deliberately provides the competent authorities with inaccurate documents or

data in order to obtain a license to carry out real estate development activities;

2. knowingly offers for sale units in unreal real estate projects;

3. embezzles, illegitimately uses or spends payments made to him for real estate

development purposes;

4. an auditor who deliberately prepares false report regarding the result of auditing

the financial position of the developer, or deliberately hides material information

in such report;

5. a consultant who knowingly certifies false documents in relation to the real estate

project; or

6. a developer who deals with a broker who is not registered in the real estate

developers register in accordance with the provision of regulation 85/2006

concerning real estate brokers in the Emirate of Dubai

shall be punished by imprisonment for no less than one month and a fine, or either

punishment.

Article 17

A developer shall be de-registered in the following events:

1. if it is declared bankrupt;

2. if it fails to commence the construction works within 6 months from the date of

the approval granted to it to sell off-plan units without having an acceptable

excuse;

3. if the license granted to it by the competent authorities is cancelled;

4. if it commits a violation under Article 16.2, 3 or 4 hereof; or

5. if it commits a violation of the laws and regulations regulating the real estate

activity in the Emirate.

Chapter Five

Final Provisions

Article 18

Existing developers at the time the provisions of this Law become effective should

adjust their positions to comply with the provisions hereof within 6 months from the date

this Law is published in the Official Gazette. The Department may extend the said

period as it may deem fit.

Article 19

The Department may charge administrative fees against the services provided under

this Law.

Article 20

Any provision or procedure in any law or regulation shall be cancelled to the extent the

same is in conflict with the provisions hereof.

Article 21

The President shall issue the resolutions required to implement the provisions hereof.

Article 22

This Law shall be published in the Official Gazette and come into force from the date of

its publications.

Mohammed bin Rashid Al Maktoum

Ruler of the Emirate of Dubai

Issued in Dubai on this day ____________2007

Corresponding to ______________1428 A.H.

An amended copy of the draft law, prepared on 14.03.2007

From flippers to floppers – Banking & Finance – ArabianBusiness.com

From flippers to floppers – Banking & Finance – ArabianBusiness.com

One has to feel for the now extinct species of property pundits known as ‘flippers’.

They came, they saw, they coined it. Now they’ve come a cropper.

It’s hard to muster similar sympathy for mortgage lenders — the Oliver Hardy to the flippers’ Stan Laurel — they happily allowed customers to take out multiple loans with cursory credit checks. Now they’ve left us all in another fine mess, scratching our heads and covered in flour.A few months ago, banks were content to provide multi-million dirham mortgages to customers earning less than 20,000 dirhams ($5445) a month.

Now, HSBC bank has let slip that it doubled the minimum monthly salary threshold on Nov 1 from 10,000 dirhams.The bank claimed in a statement the new credit eligibility criteria “will ensure that customers receive loans that they can afford to repay at a time of considerable uncertainty around the world”.

A few months ago, the same bank offered as much as 90 percent financing on the cost of buying a home. Others pledged to complete deals in 24 hours. Now they wouldn’t risk giving those same customers a loan to buy a bike.

It’s outrageously schizophrenic behaviour that only serves to destabilise markets and erode confidence.

International banks were able to reap handsome profits by charging their customers interest rates of eight and nine percent on so-called ‘variable’ rate mortgages, when the prevailing cost of money was less than half that.They told us their rates were based on movements in the Fed Funds rate, but added in parenthesis and in a smaller font that they reserved the right to ignore it, if they felt like it or if there was an ‘r’ in the month.

The justification for such usurious lending practice and such nebulous terms and conditions, was the “risk premium” applied to fledgling Gulf freehold real estate markets.

Flippers were allowed to prosper because banks and property developers collaborated in a system which encouraged speculation and even required it.

It was the ‘get rich quick’ era, during which those with a little money to put up front could see massive returns, based on a property bubble that some seemed to think would never burst. At the same time, the banks and developers were coining it and happy to hand out money and property deeds to anyone who wanted it.

The stage payment method of buying apartments and villas encouraged investors to place multiple deposits on properties without ever intending to occupy them, while banks granted mortgages to customers, aware that they had no real way of knowing whether those same customers were simultaneously applying for another mortgage at the bank next door.

So we had people borrowing beyond their means and a banking system which was happy to gain as much exposure as possible to an industry supported by real estate-backed debt. That does sound familiar.

Sean Cronin is the editor of Arabian Business English.

Real Estate Agents: Dubai Boom Is Ending

http://blogs.wsj.com/economics/2008/10/27/real-estate-agents-dubai-boom-is-ending/

Stefania Bianchi, Mirna Sleiman and Stefania Bianchi report from Dubai for Zawya Dow Jones.

A six-year real estate boom in Dubai that spurred a $475 billion building frenzy has ended, according to agents who say sales are collapsing amid fears that the global economic downturn will hit the sheikdom.

“Last month was a real disaster and worse is coming I guess,” Mehdi Zoghbi, an agent at Middle East Real Estate Consultants, told Zawya Dow Jones Sunday.

Zoghbi says that desperate sellers are now offering off-plan properties on the secondary market for a zero premium, effectively accepting a loss on their investment in order to offload quickly. Dubai, the first Gulf sheikdom to allow foreigners rights to buy homes, may also be the first to see a crash in property prices.

“Our commissions have fallen by up to 70% recently,” said Khaled Daji, an agent at Al Jabal Real Estate. “The most hit are the projects under development and those luxurious high end. We plan to survive for another six months to see how this crisis unfolds.”

But the city’s biggest developers like Emaar Properties PJSC and Nakheel are adamant that sales remain robust. Mohammed Alabbar, Emaar’s chairman and one of the architects of Dubai’s real estate boom, said in the company’s third-quarter statement that “we are very confident of our company’s fundamentals and future growth.”

That hasn’t stopped investors dropping the company’s shares. Emaar’s stock has fallen 62% since the beginning of the year, that’s more than the 48% fall in the Dubai Financial Market’s main index over the same period, according to Zawya.com data. Earlier this month, Colliers International said the growth of property prices in Dubai slowed to 16% in the second quarter of 2008 from 42% in the first quarter. Morgan Stanley warned in August that property hotspot Dubai could see a 10% fall in prices by 2010.

A collapse in real estate prices will add to pressure on Dubai’s economy, which doesn’t benefit from the vast oil income enjoyed by neighboring Abu Dhabi. Property and construction are estimated to account for about 30% of the emirate’s economy.

Meanwhile, the nerve – and wallets – of Dubai’s shoppers will be tested this week when, against a tide of global economic woe, the region’s largest shopping mall opens. Covering an area of more than 50 soccer fields, Dubai Mall will have more than 1,200 shops; one of the world’s largest indoor gaming arcades; an Olympic-size ice rink; the world’s largest indoor Gold Souk; and one of the world’s biggest aquariums, which will be home to more than 33,000 types of sea life, including over 400 sharks.

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Global recession resulted global oil, housing, commodities asset prices bubbles burst, plunge more than 50 % will be spread into oil consuming and oil producing countries
details on
www.osawh.com/mortdefa.htm
www.osawh.com/GCaptbj.html

Comment by Warren Huang – October 27, 2008 at 7:19 pm

cool article

Comment by hue g. rection – October 27, 2008 at 8:06 pm

Stefania and Mirna, thanks for this article. Interesting to see how other people are living and investing.

Comment by tom a taxpayer – October 27, 2008 at 11:08 pm

A fall in prices may actually benefit Dubai in the long term.

The escalation in cost of living in Dubai, driven by property and rent prices, has become unsustainable.

And speculation will end leading to more realistic valuation of assets.It has clearly been a speculative market when a

down payment of 20 per cent provides a 100 to 150% per cent in a less than a year from property flipping.

Comment by Dave Stern – October 28, 2008 at 12:35 am

As someone who lives “on the ground” here in Abu Dhabi, I can tell you that Dave Stern’s comment is incorrect:

the locals have been taking out personal bank loans to cover just 2 to 3 month’s mortgage payments and then

flipping properties within that time (not a year!).

They were buying up to six properties at a time in this manner.

These purchases were all “off plan”, the properties were not even under construction.

This is why the real estate market was, ultimately, unsustainable.

Comment by Jan Newton – October 28, 2008 at 1:02 am

I have been a doomsayer of the Indian real estate market when I predicted the fall in February 2008 -

 http://www.eclectic-investor.blogspot.com
The Arabic leverage is up to 100 times capital. I have personally know of business center receptionist

doubling up as a “real estate flipper” and now has overleveraged and stuck in properties that are not even

under construction. It is normal for authorities to blow their trumpets, but expect their sounds to end in a

Big Blowup in their faces.
A cataclysmic disaster and perhaps the start of Dubai’s fall like Beirut before and Aden even before that.

Comment by Cataclysmic Collapse of Dubai Expected – October 28, 2008 at 2:26 am

Castles in the sand?

Comment by tom a taxpayer – October 28, 2008 at 2:50 am

Currently panic is ruling the markets all over the world irrationally.

There is no exception, however, the Arabian Gulf have strong economic fundamentals and the recovery

will be much faster than in the West. As a matter of fact, the Q3 financial results of the biggest market players

for the are better than the Q3 results in 2007.
From the position of commercial property broker in Dubai, I can assure you that corporate end-users are good

clients at the moment. We have sold office floors in Business Bay during the last month and recently preparing t

he transactions of commercial properties in Jumeirah Lake Towers.

In times of crisis there are losers and winners.

Comment by Gergana Mineva – October 28, 2008 at 4:33 am

When junk emails started arriving in one of my “special” email boxes – promising pie-in-the-sky

pre-construction deals in Dubai – went Short Oil and Emerging Markets ETFs (Thank you, Goldman oil analysts!!!)

Comment by Federales – October 28, 2008 at 6:23 am

Mr. Gergana Mineva!
It is Persian Gulf not Arabic.
Please use always the correct name in the future.
Thank you!

Comment by Farhad – October 28, 2008 at 7:21 am

Farhad, Dubai is essentially ruled under Shirah Law, a cruel brand of despotic fascism that harms

women and children and is antithetical to freedom. Dubai though more “progressive”

than most repressive regimes in Sand Land, hates Jews and will not allow the

practice of such a “heinous” religion as Judaism. Yet you are worried about words and nomenclature.

Words are meaningless, actions are all that matter.

Comment by Kafka – October 28, 2008 at 8:32 am

OPEC’s manipulation of oil prices and speculators caused this current recession by increasing oil prices to historic levels.

Comment by Blame OPEC – October 28, 2008 at 11:16 am

Market is certainly undergoing a correction but to predict doom is a little foolhearty.

There is TREMENDOUS liquidity in the market and the reserves built up during the period of

high gas prices will certainly be deployed to stablize the realestate market which is the cornerstone of ‘

New’Dubai. Also, Dubai is NOT ruled by shariah law. In fact, it is one of the most modern states

in the gulf and is known for its liberal political/social environment (recent stories about sex on the beach

 not withstanding). There are a number of very successful american jews in the city so the anti-semetic

claim is just rubbish. There is no law against practise of ANY religion.

Visit the region before speaking

Comment by DubaiDreamer – October 28, 2008 at 1:33 pm

The smart money has begun the pull out already. Bank lending is drying up.

The only ones who continue to believe that the real estate market will go up are real estate agents

and speculators who have not been able to off load so far. The secondary market for off-plan properties is in a free fall.

And no amount of deliberate project delays and throwing people out of villas is going to prevent the serious

correction that Dubai property so badly needs. It has been the most speculative, unregulated and unprotected

market the past 6 years.

Comment by Kingsley – October 28, 2008 at 1:55 pm

couldn’t have happened to a nicer group of people…

Comment by charlie – October 28, 2008 at 2:13 pm

Gee, I guess the Arabs are poor for a reason = incompetence.

High oil prices masks the basic incompetence for awhile. But stupid is as stupid does.

Comment by CaliPOWER – October 28, 2008 at 2:17 pm

Cry Out Loud and you all say what you want about dubai …BUT The truth is: We Are All Loooosing!!

The whole world is sinking…

Comment by The True Man – October 28, 2008 at 8:44 pm

Kingsley makes some good points, Dubai is in need of regulation.

Prices may be predicted to fall, but it isn’t happening yet in the rental market.

Buyers have bought up so much of the properties and now are holding them until they can get

their desired selling price (usually expected 20% increases from sale to sale)…leaving the rentail market

struggling. Landloards can demand rents starting at $25,000/yr in ONE payment upfront for 450 sf studios…in empty,

 construction sites of buildings! Dubai is leaving no room for renters & the middle class.

Rents are still exorbitant and there are few regulations in place to support the renter.

Comment by MRODubai – October 28, 2008 at 11:40 pm

As someone who lives and breathes real estate since its first days here in Dubai,

I feel it is necessary to see the cause of the boom and only then we may be able to make some

calculated estimates of the future market condition.
1. Dubai real esate growth was based on a promise of freehold, residence permit, tax free benefits

for nationalities who have certain restrictions in their countries and saw dubai as a safe secure investment opportunity.
2. Government of dubai removed the residence permit guarantee by buying a property.

So automatically no tax free status, coz if you are not a resident of Dubai you can not open

bank account & you are still liable for taxes in your country.

Comment by real estate expert – October 29, 2008 at 12:21 am

3.Nakheel/emaar/dubai holding factor: All these companies hate each other and therefore fight for the

attention of sheikh mohammed, which means the greed and ego overtake logic and feasibility!!! result:

Excessive lands/properties/ mega projects without proper planning & infrastructure in place.
4. Universal law supply Vs. Demand: nobody realises that the already anounced projects in dubai will need

about an extra 6 million people to live in it!!!! (From Lagoons, meydan, dubailand, tatweer, mizin,

industrial projects, emaar, bawadi, the world, the universe, palm deira, port rashid, waterfront, arabian canal,

dubai world central….)Excuse me thats almost double the UAE population.

Comment by real estate expert – October 29, 2008 at 12:29 am

5. Loose the Confidence You loose everything: The investors/buyers are wakening up to the reality & there is

absolutely no confidence in the market not only because of the global financial crisis but mainly because of the

over supply & fear of the crash.

6. Genius Government policies: dubai government is its own worst enemy, at times like this what does dubai do?

They launch new mega projects & new development companies like meraas with ambitious projects that will only

further dampen market confidence.
7. Investor’s security: Dubai’s judicial system is as good as any underdeveloped country with selective rights

depending who the complaint is against.

Comment by real estate expert – October 29, 2008 at 12:35 am

8. No human rights when it comes to dubai police. infact torture and enforced disappearance has become

common in dubai under the umberella of the state security they can attach anything to anyone to reach their

commercial targets.
9. Everybody owns 20% of several properties: Paying a few installments does not make you theowner so when the next installments come due and there is no quick sales like the good old days, what happens? Sell below the price or lose your deposit with the developers…. results in what we call “stress sell”

Comment by real estate expert – October 29, 2008 at 12:40 am

10. Oil prices & Inflation: ofcourse oil prices doubled so did the cost of steel & cement & food & labor

accomodation… result abnormaly increase in construction prices on a weekly basis!!!… so an increase

in property prices due to rising cost….
11. Decrease in Oil prices: Sudden decrease in everything from food prices, to raw materials…..

creating sudden panic as properties are cheaper to build and a fear of further reduction is iminent.
12. There are too many chefs in the tiny real estate kitchen of dubai, have you noticed there aren’t any

happy faces in the media anymore!!! what happened to the so called international anouncements about their acquisitions…

Comment by real estate expert – October 29, 2008 at 12:45 am

13.The Sheikh factor: when the ruling family is desperately getting into everythng from real estate,

to owning or managing coffeshops and bakeries, landries…. then the opportunities for the public is becoming less

and less which means a lot of unhappy UAE nationals and residents…. which everyone know will not help the already

unstable state of dubai.
14. Big brother factor: let there be no doubt Abu Dhabi will eventually overtake dubai for the right reasons.

 money is not an issue thanks to oil & there is no rush to sell everything just to raise funds for the previously

anounced project like in dubai. Dubai’s power in UAE will be reduced due to lack of funds, money talks!!!

Comment by real estate expert – October 29, 2008 at 12:51 am

15. regulatory body with no teeth: RERA is supposed to ensure that developers/real estate agents

/ landlords/ follow the rules and regulations… what happens if a developer or an agent does not follow the law?

 NOTHING… just a 100,000 fine… comparing to the hundreds of millions at stake its a drop in the ocean.
16. Public Prosecution & Corruption: Everything in public prosecution is relative & variable…. there are

cases of misrepresentation by nakheel, for example selling thousands of villas

 and after 2 years just cancelling the project…. nobody can make a complaint.

Likewise several private developers & real estae agents operating in a fraudulent manner are let go off the hook.

Comment by real estate expert – October 29, 2008 at 1:54 am

Take away the speculation and in the end it comes back to fundamentals. Rental yields on finished

properties are currently 2-5%. Interest rates on property loans are 8-9%. Deposits on property

purchase are 30% minimum. If you want to buy a 2 bedroom apartment in a decent location you

would need to be earning US$200k to meet the lending criteria. The stock market in the Gulf has

fallen 25% in th elast 30 days and real estate stocks by 60% in 9 months.

Look for similar movement in property values.

Comment by steve – October 29, 2008 at 5:20 am

Main reason dubai eco will collapse is the RUSSIAN factor.

Comment by GB Bajaj – October 30, 2008 at 1:58 pm

The comments entered by the real estate are very impressive/ Truly an expert.

Comment by Admirer – October 30, 2008 at 4:08 pm

Great comments by the real estate expert as i call dubai an artificial market. There is onemore important point

that expert forgot is what will happen after Sheikh Muhammad as UAE history says e.g.Sharjah.

Advice to all expat go back to your homeland and serve for your country as Dubaidoes not have a

nation like Oman, Bahrain , Kuwait or KSA.

Comment by Fact Finder – October 31, 2008 at 7:18 pm

Well it seems everyone here is pretty sure that Dubai Property Market is done and huge Crash is in Pipeline

(or is already there). Well no matter how much we want it but it’s not entirely Ture. The Factors Mentioned

by “Experts” here does not have much impact on property market. Property Market depends on

three important factors. 1) Creations of new Jobs and thus Movement of New People to area

2) Amounts of loan banks willing to give 3) Pricing of the property
In Case of Dubai, Companies are still very much eager to open up an office here which saves them 30% to 40%

in direct Tax fromtheir own Country. That Means new companies, new Jobs, new demand.

Comment by Real Estate Investor – November 1, 2008 at 8:56 am

it is easier to open an Office in Dubai than Buying BMW in U.K. It Still Costs AED 10,000/-

and every employee gets residence visa (AED 8000 per employee for three year) hence TaxFree status.

Dubai Government investing in own companies E.G opening up Hotels, Telecome, Café and everthing

else is also very Good for Dubai. Since 30% to 40% of Dubai’s Expat population

work in these Companies shows how serious Dubai Government is in bringing people to Dubai.

The 2nd factor is the bank Finance and that’s a problem right now. Due to Global Crisis Gulf Banks have huge

Liquidity problem and that’s the reason they have Stopped Finance,(Yes Stopped) Most Banks have Already

Reached their Yearly tar

Comment by Real Estate investor – November 1, 2008 at 8:57 am

Most Banks have Already Reached their Yearly targets of cash outflow and Simply don’t have cash for mortgage.

Hence the finance buyer which is about 60 to 70% of market cannot buy. BUT from Jan next year Banks

will have fresh cash and hence finance will be back on track. Since Finance will be back the property market

will tend to rise again.

The 3rd Factor Pricing – Yes Dubai prices had increased on massive pace and yes things were gone

up really fast but still prices were not par will other countries (similar metropolitan cities) and now

with the correction in property prices due to the Financial problem the prices are even more attractive.

Comment by Real Estate investor – November 1, 2008 at 8:58 am

No place in the world can sustain to grow above 40% annually but prices only crash only when the demand dries up. Like in U.S and U.K where most citizen already own a home and new migration is only 1 or 2% of population where as in Dubai its at 28% to 40% every year and most people here still live in rented houses. Now with that kind of new people market will not crash but yes the growth can slow to 10% to 15% will is more realistic level.

But everything’s not that great also, Dubai Needs to a lot more to keep growing and attracting

more expats E.G Allow more foreign ownership in local companies, give more Rights to expats,

and introduce permanent residency with work permit.

Please let me know if some one thinks the other way

Comment by Real estate Investor – November 1, 2008 at 8:59 am

The UAE is now a ‘Buyers’s Market’ and I hope developers improve incentives such as back-loaded payments plans etc.

Real Estate Dubai

Comment by Andrew – November 1, 2008 at 1:32 pm

in dubai…reality is, the dubai govt thinks just like any other govt in the world i.e. india, usa, uk, japan etc.

nothing is done in dubai unless its severely needed [i.e. metro] and then its splashed with every god

damn adv from lipstick to lingerie to condoms to repay the loans taken for it. Y?

coz dubai govt HATES HATES HATES to pay for it from its pockets.

Comment by analyst expat – November 1, 2008 at 3:45 pm

To the “Real estate Investor” who does not have a clue of what this place is like: re-read the comments

by the “real estate expert” and by “Fact Finder” and then get rid of your investment as fast as you can and while you can.

Yes, you would be safer if you were in Kuwait for instance, but not here. Get out of your circle and talk

to others and get to know the real picture. Does “Pirate Coast” mean anything to you?

Comment by Yet another fact finder – November 2, 2008 at 1:01 am

Dubai has been trying to imitate the West for a long time now.The current situation is a predicted end to its Western dreams

Comment by Shaiju Janardhanan – November 2, 2008 at 6:10 am

excellent article… it’s so nice to read objective and realistic articles (and comments) about dubai and

their real estate market. i’m absolutely sick of reading blatent property (or any other) propaganda in Dubai’s “Newspapers”.

Comment by michael – November 2, 2008 at 6:55 am

i have read your article. wish to know few details regarding the Rental Index on Residential & commercial Properties.

There is a situation which were i have (a tenant) is going through tough time in Dubai

i have rented a Shop inside a Shopping Mall from past 4 years which was running in losses.

From 10 months the customers have raised and he was doing the Breakeven.

Suddenly the Mall is sold and New Landlord is asking for New RENT 40% increase and he is showing a

document of RERA stating landlord can increase the Rent to Market Rates.
i have put all his money in the business and may go bankrupt incase the situations goes out of hand
NEW LAND LORD IS AWROSTAMANI REAL ESTATE

Comment by Qurashi – November 5, 2008 at 7:26 am

Hi guys, am glad some of the readers find my comments useful. I just would like to add that god forbid if

anything actualy happens to our “super man sheikh” (Sheikh Mohammed) the entire wolves surrounding

him will start eating each other as history has shown in the gulf.
HSBC & lloyds TSB have stoped giving out mortgages to apartments in dubai what does that tell you?

PROPERTY CRASH is inevitable but the question is how hard it will hurt the government who has nothing in the account.
I hope I am wrong, but rumor says sheikh mohammed has had a stroke and an operation.

God help all those who still continue to dream and believe the wonderful animations of dubailand and nakheel!!

Comment by Real Estate Expert – November 11, 2008 at 10:44 am

The real estate market in dubai has crashed already. I bought a few floors from Dynasty zarooni’s sheffield project in dubai waterfront at 2700 dhs per square feet, today i can not sell it 30% below the purchase price. Why because Dynasty Zarooni does not even own the land & they don’t even have an escrow acount, yet people have paid over 20% to their acount and there is no construction on site. RERA knows about it but does nothing.

Comment by Dubai Resident – November 12, 2008 at 2:54 am

Really impress with your knowledge Real Estate Expert. Keep us updated to whats happening in Dubai Real Estate and when it will be a good time to buy probably an year from now.

I am based in Canada real estate here is doing reasonably well small 5% correction which is normal and acceptable.

no major job losses or recession predicted yet Canada has a sound economy.

Comment by Real Estate Crashing – November 15, 2008 at 4:03 am

The nightmare is here…Great analysis by Mr. “Real Estate Expert”

Comment by Dubai Nightmare – November 16, 2008 at 6:50 am

It’s time that speculators lose something. Earning hunderds millions was not normal.
I never believed Dubai, never, it was bluff, very well supported by propaganda. Crisis will clean it up.

Comment by Azizi – November 19, 2008 at 8:11 pm

I wish real estate expert had published these comments in dubai dailies… thousands of small investors

like myself would not havebeen trapped in unrealistic promises.

Today my property is worth 40% less than what I bought it 4 months ago.

I blame the government for bringing so many projects into the market and killing the confidence.

Why are they quiet. Real estate expert how can I get in touch with you for some advice… email?

Comment by Silvia – November 20, 2008 at 3:35 pm

In the 1980s and 1990s, Dubai used to be such a fun place to live in. Good medical, good salaries, good savings.

Today, expats are lucky to save even 5% of their income and stress levels have gone through the roof.

Traffic jams 24 hours a day, near impossible to get street parking, a 45 minute wait to get a taxi.

Indirect taxes in the form of extremely high rent and huge fees on everything related to living in Dubai.

Before, people treated you for who you are. Now they treat you based on what you drive, where you live

and how much you earn. Dubai is no fun to live in anymore, rather it is a materialistic society amidst an ugly

 poorly planned concrete jungle where the rule is eat or be eaten

Comment by Ex-Dubai Expat – November 21, 2008 at 6:35 am

Fortunately avoided the market here as I read the contracts and evaluated the risk given the emerging legal infrastructure.
Very little sympathy for those that bought, as they knew that the potentially high returns came with equally high risk.

Unfair to blame the Gov’t they have been putting the right regulatory structure in place, but this usually takes years.

The region needs a Dubai and I have no doubts it will be a regional powerhouse.
In the short run I expect an 80% drop in values, much like Singapores correction in the late 90’s.

Comment by sulli – November 21, 2008 at 6:40 am

Been in UAE since 1994 but lost the bull market due to over protectiveness any way nothing to cry for,

can see one more coming in the near future as I have seen these happening in the past, unlike India from

where I come from, Dubai is not seen as a permanent residenence for most of the expatriate community

residing here, Most of us especially Indians are phobic of the locals and have been taken undue advantage

by the local youths and some most of the GCC expatriates and in my personal experience worst among these

are the Palestinians who seeems to have no respect to another human being now saying that, since no expatriate sees

UAE as his future home but a stop gap arrangement to make a

Comment by Lost Bull – November 24, 2008 at 2:26 pm

quick buck, which attracted the soldiers of fortune around the world, and persons with questionable past and

 present but with a huge wallet even though there were some sort of regulation put in regarding the money transfers,

there seems to be money flowing in from every were, Now in India we have a huge population and we have absolute

need for housing even it is rare to see such an mega project as in Dubai even with some of the worlds richest persons residing

there, Anyway before coming over to Dubai I used to travel around the world and it surprised me in 1994 why

Dubai did not have MRT which was very much common even in small countries such as Singapore,

And it surprising and at the same

Comment by Lost Bull – November 24, 2008 at 2:44 pm

extremely frustrating that you cannot travel back in the same taxi of other emirate unless you have engaged

 it for a round trip, about just 2-3 years back an inter emirate buses started plying the roads.

Once the real estate market started selling there were lots of people rushing in to buy assuming that they can forsee

a stable future with permanent residence visa status if they bought a free hold property which did not materialise,

again the only option that was left for all to make a quick buck when the boom lasted, Extremely well marketing tools

 were used to attract people from all over the world with a promise of living on beach life style, and compared the

prices to the major cities

Comment by Lost Bull – November 24, 2008 at 3:00 pm

found it to be cheap minus the infrastructure to support such a rapid developement, due to all projects going on simultaneously,companies ,man power, machinery and materials started flowing in and competitiveness within the developers started pushing the price upwards, speculators started rushing in prices went beyond the reach of genuine end user, any product which becomes unaffordable to the end user shall not sustain its existence so the crash in the market was inevitable, But even in this period there are plenty of genuine buyers if the prices are affordable and without high maintenance charges for the upkeep it is upto the developers to recognise, presently there are lots of projects

Comment by Anonymous – November 24, 2008 at 3:15 pm

being shelved, scaled down and going for a rebiding ( face saving tactics), speculators immediately stated off loading their stocks , few with sustaining power shall hold untill they cannot afford to pay their mortgages any more, companies have already started retrenching, rents in Dubai started droping,bank interest rates have incresed, come March ( end of academic year)2009 we will see an exodus of families saying goodbye to UAE since it is not worth for them to be live here any more, and then the real crash starts…….. Advice time : 1. Do not panic this is not a end of the world 2. If you cash start investing in the shares 3. force banks to reduce the interest rates and extend the

Comment by Lost Bull – November 24, 2008 at 3:31 pm

repayment period. 4.Hunt for good bargains in the real estate property market start buying hagle with the developers,5.

This is good news as there is very sustainable future ahead for those who weathers this strom 6.

Live life comfortably as you will not take anything when you are dead anyway 7.

Pray for a good health during this stressful period ……… May God Bless U.A.E and its Rulers

Comment by Lost Bull – November 24, 2008 at 3:41 pm

Looking for real estate in Dubai? Property Portal connects you to hundreds of sales and investment opportunities

in the world’s hottest real estate market.

Comment by server Baig – November 25, 2008 at 5:29 am

money-grubbing pigs deserve to wallow in their own filth

Comment by rich man poor man – December 1, 2008 at 6:54 am

well dune dubai dream..!!

Comment by ignorent – December 6, 2008 at 4:08 pm

to all Dubai haters i say “moral indignation is jealousy with a halo”……

Comment by Wells.H.G – December 11, 2008 at 1:36 am

i believe that rich man poor man’s comment is logically directed towards the party that created this

worldwide financial crisis, which naturally is not Dubai…..see what i mean !?

Comment by Wells.H.G – December 16, 2008 at 3:01 am

 

DZ – Al Fajer – ACI

Comment by Sarah

LAST NEWS about the people behind the mysterious game around Ebony and Ivory Tower Plot H3 and G3 Jumeirah Lake Towers – Al Fajer Properties – Dynasty Zarooni

#UNDER C: JBC (9 Towers), 41-46F Com, 149-167m, Plots G2, V1, Y1, N3, W1, H1, G3, H3, L1 – Page 15 – SkyscraperCity

AHHHHHHHHHHHAAAAAAA……..seems to be A “FLIPPER” Connection…good friends of ACI

original published:

http://www.dc-epaper.com/dc/dch/2008/08/25/ArticleHtmls/25_08_2008_101_009.shtml
S anjay Chimnani, one of the partners in Bottles and Chimneys, a popular pub in Hyderabad, can do without help from his mentor Kabir Mulchandani, owner of Baron International, the company that pioneered colour TVs and music systems under the brand names Aiwa and Akai. After that shut shop, Mulchandani started doing real estate business in the Gulf.
Now, Dubai’s Real Estate Regulatory Authority (RERA) is probing Mulchandani’s operations after nearly 30 NRIs from India, Russia and the UK complained online that he had misled them by showing a different property and selling them another. He is reportedly accused of having done other fraudulent deals. You may wonder what the connection is with Sanjay Chimnani. Well, Chimnani worked closely with Kabir Mulchandani in Mumbai after which he came to Hyderabad for a few years to market the Aiwa products. Though this venture started off with a bang, it vanished without a whimper.

Next one heard that Sanjay Chimnani was launching B&C in a grand way. He put his heart and soul into pro moting it. But within a short span, he left it all to his partner Sanjay Batla to do real estate business in the Gulf. It was alleged that Sanjay had joined Mulchandani’s real estate company, Dynasty Zarouni.

Now with Mulchandani being probed, Chimnani is back in the focus. “He has no links whatsoever with Mulchandani any more, he moved away to be part of a German company,” said Sanjay Batla, Chimnani’s partner at B&C and Global Properties, the first Indian franchisee of ACI Real Estate, an affiliate of German investment company Alternative Capital Invest GmbH.

Said to be in Italy now, Chimnani started looking for other options after supposed differences cropped up with Mulchandani with regard to his style of work. Chimnani is associated with ACI Real Estate as its joint managing director.

Interestingly, ACI boasts of a portfolio which includes residential, commercial, leisure and retail developments in prime locations in Dubai, Abu Dhabi, Ajman and other emerging cities across the UAE.

“It is impossible that someone can indulge in such kind of malpractices in the real estate business,” Batla said, defending Mulchandani, while he vehemently denied Sanjay Chimnani having anything to do with Mulchandani.

Repeated attempts to contact Sanjay Chimnani failed. But he is expected to be back in Hyderabad next month to concentrate on real estate business developments here

A Statement from Dynasty Zarooni Dubai – September 20. 2008 ?

original published:
http://journals.aol.com/jnthnjon3/dynasty-zarooni-dubai

Dynasty Zarooni Dubai:

“UAE Dynasty Zarooni Expose’”

With the kind of investment going on in Dubai, a small property firm Dynasty Zarooni is creating huge trouble for investors from various regions. The market is already talking about it, the Dubai Authorities are investigating it, UAE and International tabloids are running news on one of the owners named Kabir Mulchandani. From Daily Telegraph to UAE National and on towards Indian tabloids, they are creating headlines.The episode started with Dynasty Zarooni (R) misrepresenting their project status on the famous chain of Ebony & Ivory brand name. Dynasty Zarooni flew around pictures of their project at Intermediary/Advanced Level Stages, when the media discovered that the truth was grim and far from what was being advertised.And so opened the confusing scenario which has also put a US Investment Body in a compromising position. Compromised because Investment Bodies mostly carry public investments for a fair share of the returns.It has had minimal correspondence with Dynasty Zarooni as the office spokespersons at Dynasty Zarooni Corporate Offices are unavailable. The web is full of discontent for International Investments attached with Dynasty Zarooni as there are tons of stories revloving around their projects. There are blogs, videos, tabloid features, newspaper headlines and Real Estate Authority’s gray stance on the subject.There is absolute abhorrence over the amalgamation of mixed information everywhere.I have had the chance to cover various mismanagement and misinformation scandals worldwide and needless to say we are witnessing another colossal clandestine over there this year.For further advise on planning and managing your investments, please contact me
on my email.

________________________________________

The direct
Statement from Dynatsy Zarooni to the above

Comment from dynastyzarooni 9/20/08 11:10 AM Permalink

Mr.Jonathan,

Dubai is a booming market and Dynasty Zarooni boasts business value of upto 21billion AED.
We have dozens of projects underway.
There was a major muck up by Gulf News when they published the wrong pictures of our project.

I am very apologetic that this happened and I assure you that these projects are going to be completed.

As for the mismanagement, I think we all make mistakes and we have made ours.

Our agents will be in touch with you after our RERA investigation is over.

It is true we were denied entry into an international market and we are finding out about the details next week.

I assure you that we shall revise ourselves and our objectives.

I am sorry if you feel your investment went down, but we shall make sure of securing your next investments.

Regards,
N.Vishran
CEODynasty Zarooni LLC

Update :Buyers are still angry – Just another Blog about Ebony and Ivory Tower Dynasty Zarooni – Al Fajer Properties

Advertisement for Ebony and Ivory Towers September 2008 -

Jumeirah Road Dubai – Dynasty Zarooni / Al Fajer Properties

Picture 7starsDubai Spetember 2008

original published:
http://reradubai.wordpress.com/2008/09/22/dynasty-zarooni-fails-to-trick-rera-case-critical/

DYNASTY ZAROONI FAILS TO TRICK RERA. CASE CRITICAL

Dynasty Zarooni is trying to cover its loose ends but to no avail. The real estate company still has not come up with a decent explanation for its disgusting trick to misquote facts about the ebony and ivory project. Their fake pictures issue still hasnt been addressed by them, insted they go ahead and make these videos and post some insipid articles to make themselves look better.

They’d rather just give out the truth about their misrepresenting tactics to avoid all of the negative publicity.

They really do think the investors are stupid to forget about it.
Please give out an explanation

Investors, please confirm videos. In the meantime, they are releasing such positive made up thing about themselves:

These articles are such a preliminary hoax that even someone with a limited IQ can see right through them:

http://www.mumbaimirror.com/net/mmpaper.aspx?page=article&sectid=5&contentid=20080917200809170312369856aecaf73

http://archive.gulfnews.com/business/General/10240118.html

This is a shameful act

___________________________________

Brief Background:

A few days ago, a number of comments and questions were posted on various Dubai real estate blogs regarding some of the activities of Dynasty Zarooni for the sale of the Ebony and Ivory
Towers that are being developed by Al Fajer Properties.

Dynasty Zarooni deemed this a smear campaign and issued a strong statement through Gulf News about getting a clearance from RERA, however the initial questions remained unanswered by them.

I conducted an independant but simple and unbiased investigation of the case. The following is a factual representation of my alarming findings.

The questions raised here need to be answered in order to safe guard investor rights and protect Dubai’s reputation.

Violations of RERA Laws Committed by Dynasty ZarooniMisrepresentation in the Promotional CampaignUnauthorized Activity (Not in accordance with the commercial license Real Estate Brokerage)

1. Misrepresentation in the Promotional Campaign

Under RERA Laws, an Agent/Broker violates the law by giving misleading/fabricated information or using false images and creating misrepresentation for an Off Plan Sales Promotion Campaign – a criminal offence in U.A.E.

read more: http://www.zaroonidynasty.wordpress.com/

http://zaroonidynasty.wordpress.com/2008/09/15/biggest-dubai-property-scandal-revealed/#comments

or: http://www.dynastyzarooniivory.wordpress.com/
http://dynastyzarooniivory.wordpress.com/

or in Blogs below: original published:
http://reradubai.wordpress.com/footage/

FOR FURTHER INFORMATION, PLEASE VISIT SOME OF THE UNDER MENTIONED BLOGS:

http://dynastyzaroonifraud.wordpress.com/

http://dynastyzarooniscam.wordpress.com/

http://dynastyzarooniscandal.wordpress.com/

http://zaroonidynasty.wordpress.com/

http://zaroonidynastyfiasco.wordpress.com/

http://zaroonidynastyscam.wordpress.com/

http://dubaiscams.wordpress.com/

http://dubaiscandals.wordpress.com/

http://kabirmulchandani.wordpress.com/

http://masterofscams.wordpress.com/

http://uaefraud.wordpress.com/

http://dynastycom.wordpress.com/

http://dynastyinfo.wordpress.com/

http://dynastyzaroonirealestate.wordpress.com/

http://dynastyzaroonijumeirah.wordpress.com/

http://dynastyzarooniivory.wordpress.com/

http://dynastyzarooni.blogspot.com/

Mumbai News – Mumbai Mirror Online – Dynasty Zarooni to float a city on water in Dubai, BUSINESS, Mumbai News, Mumbai newspaper,Current Affairs,Latest news,Mumbai Directory,City Portal,Mumbai,city,Bombay,destination,Web,Internet

Mumbai News – Mumbai Mirror Online – Dynasty Zarooni to float a city on water in Dubai, BUSINESS, Mumbai News, Mumbai newspaper,Current Affairs,Latest news,Mumbai Directory,City Portal,Mumbai,city,Bombay,destination,Web,Internet: “Dynasty Zarooni to float a city on water in Dubai”

Mumbai Mirrow September 17, 2008

On August 23, Mumbai Mirror had carried a story about the alleged investigations being carried out by a government agency in Dubai into complaints against real-estate firm Dynasty Zarooni.

On further investigations, we found that the allegations were not true. Kabir Mulchandani, the 35-year-old chairman of Dynasty Zarooni explains why he is in the eye of controversy:

• Mumbai Mirror: What made you shift your base from India to Dubai, and how difficult was it, business-wise, to relocate to Dubai and start from scratch?

Kabir Mulchandani: On a trip to Dubai in July 2004, I witnessed the beginnings of the process of creating one of the finest master-planned cities of our time. I immediately felt a desire to be a part of such a unique phenomenon. So in October 2004, I moved to Dubai and set up my company, Dynasty Enterprises Inc.

The total transparency and speed of transactions in a tax-free environment provided Dynasty Enterprises the opportunity to grow its profits by over 20,800 per cent in three years.

Then, in September 2007, we merged with the real estate group of Mr Hilal Al Zarooni.

Mr Zarooni was owner of a construction and development company, which had over 30 years of experience in developing projects and the retail of luxury goods in the UAE. The merged entity, Dynasty Zarooni Group, created the largest privately-owned investment company in the UAE.

The value of projects of Dynasty Zarooni group, which have been developed; are under development; and have been successfully invested and disposed off are over Rs 26,000 crores and in the process, investors of Dynasty Zarooni Group have made returns of over Rs 7,500 crores.

• MM: This paper recently carried a story about allegations made against your company which later turned out to be false. Do you see any plan by your adversaries in this campaign?

KM: Success has no friends. During the merger there were certain senior executive(s) in the company who felt insecure about their position in the merged entity.

Once the merger was effected, the covert operations of these executives came to light, along with details of other fraudulent activities being carried out by them.

These elements have constantly been working against the interests of ‘Dynasty Zarooni Group’ and have spared no efforts to create fraudulent and fabricated documents, which have found their way into the Indian media.

All allegations that have been given some credence by the fraudulent documents are, therefore, false and baseless. In fact, the Dynasty Zarooni Group has been given a clean chit by the The Real Estate Regulatory Agency (RERA), a body under Land Department, Government of Dubai.

• MM: Who are your competitors? What prospects do you see for your real-estate firm there?

KM: Our unique business model has helped us in fulfilling a niche requirement in the UAE market.

As such, we do not have direct competitors in the market. We already have strategic alliances with Al Fajer Properties LLC, managed by His Highness Sheikh Maktoum Hasher Al Maktoum, a member of the ruling Maktoum family; Business Bay LLC; Dubai Properties; Green Emirates Properties; Hydra Properties LLC; Mazaya Real Estate LLC and many more. All of the above are government, quasi government or listed entities and we are their preferred distribution partners.

The outlook for our company in the UAE real estate market continues to be bullish and we are now embarking on a Rs 30,000 crores project comprising over 6 million square feet in creating a prime new city on the water.

Update : New Blogs and Massive Warnings from Dynasty Zarooni Dubai

News Blogs: 15.September 2008
Dynasty1.wordpress.com

link
http://dynasty1.wordpress.com/2008/09/15/dynasty-zarooni-gets-clean-chit-from-uae-property-regulator/

Dynasty-Zarooni.blogster.com
http://dynasty-zarooni.blogster.com/

original published: Dynasty Zarooni
Link:
http://dynasty.ae/Dynasty/info.asp

25th August 2008

Defamatory Statements against Dynasty Zarooni

Legal Advice from Lawyer of Dynasty Zarooni

Under instructions from our client, M/s Dynasty Zarooni, we would like to inform everyone involved in maligning of our client that all the allegations / statements levelled against it and its management are baseless, unfounded and frivolous.
Each of these statements is denied vehemently. Our client is in the business of property development and, in fact, has provided such services to numerous clients of international repute and fame based around the globe. Our client is duly registered with all the concerned regulatory departments in the UAE and there are no complaints pending against it.

There is an apparent ulterior motive in these messages being posted on the web. We, accordingly, refute all the statements so posted and inform the person(s) responsible to refrain from this conduct.

This statement on behalf of our client is without prejudice to the rights our client has against such false and defamatory statements. We, hence, direct that these statements be removed immediately and forthwith failing which our client will be constrained to take legal action, civil and criminal, under the relevant provisions of the law in the courts of competent jurisdiction.

We also reserve the right to initiate appropriate legal action against, inter alia, the web site hosts, administrators, forum moderators, web masters etc.

Zitate:
Original Letter RERA Dubai:

We, the Real Estate Regulatory Agency, hereby confirm that M/s Dynasty Al Zarooni Real Estate LLC is a licensed entity from the Department of Economic Development holding License number 597065 and that it does not hold or have any existing or pending complaints or penalties relating to its registration with the Real Estate Brokers and Development Registrar to date, 25 August 2008. This certificate was issued upon the company’s request and the authority shall not bear any responsibility.

Link original Letter RERA Dubai published Website Dynasty Zaroni

http://dynasty.ae/Dynasty/pdf/RERA%20Letter-DZ%20English.pdf

Update : New Blogs and Massive Warnings from Dynasty Zarooni Dubai

News Blogs: 15.September 2008
Dynasty1.wordpress.com

link
http://dynasty1.wordpress.com/2008/09/15/dynasty-zarooni-gets-clean-chit-from-uae-property-regulator/

Dynasty-Zarooni.blogster.com
http://dynasty-zarooni.blogster.com/

original published: Dynasty Zarooni
Link:
http://dynasty.ae/Dynasty/info.asp

25th August 2008

Defamatory Statements against Dynasty Zarooni

Legal Advice from Lawyer of Dynasty Zarooni

Under instructions from our client, M/s Dynasty Zarooni, we would like to inform everyone involved in maligning of our client that all the allegations / statements levelled against it and its management are baseless, unfounded and frivolous.
Each of these statements is denied vehemently. Our client is in the business of property development and, in fact, has provided such services to numerous clients of international repute and fame based around the globe. Our client is duly registered with all the concerned regulatory departments in the UAE and there are no complaints pending against it.

There is an apparent ulterior motive in these messages being posted on the web. We, accordingly, refute all the statements so posted and inform the person(s) responsible to refrain from this conduct.

This statement on behalf of our client is without prejudice to the rights our client has against such false and defamatory statements. We, hence, direct that these statements be removed immediately and forthwith failing which our client will be constrained to take legal action, civil and criminal, under the relevant provisions of the law in the courts of competent jurisdiction.

We also reserve the right to initiate appropriate legal action against, inter alia, the web site hosts, administrators, forum moderators, web masters etc.

Zitate:
Original Letter RERA Dubai:

We, the Real Estate Regulatory Agency, hereby confirm that M/s Dynasty Al Zarooni Real Estate LLC is a licensed entity from the Department of Economic Development holding License number 597065 and that it does not hold or have any existing or pending complaints or penalties relating to its registration with the Real Estate Brokers and Development Registrar to date, 25 August 2008. This certificate was issued upon the company’s request and the authority shall not bear any responsibility.

Link original Letter RERA Dubai published Website Dynasty Zaroni

http://dynasty.ae/Dynasty/pdf/RERA%20Letter-DZ%20English.pdf

Update: The False Story ? in Mumbai Mirrow -Dynasty Zarooni – Al Fajer Properties

original published Mumbai Mirrow

Kabir Mulchandani, owner of Baron International, the company that pioneered cheap colour TVs and music systems under the brand names AIWA and AKAI, and who fled Mumbai after scrutiny by the DRI and Enforcement Directorate, is once again at the centre of controversy.

This time in Dubai.

Mulchandani had left Mumbai for Dubai where he set up a company, Dynasty Zarouni, to cash in on Dubai’s booming real estate market.

He markets ready-to-move in properties constructed by a real estate company called Al Fajer.

Mulchandani advertises these properties on his website and invites NRIs to invest money.

Al Fajer is known for its projects in Jumeirah Business Centre 1 and 2 apart from various projects at Jumeirah Lakes and Jumeirah Island.

But now Dubai’s Real Estate Regulatory Authority (RERA) is probing Mulchandani’s operations after nearly 30 NRIs from India, Russia and UK complained online that he had misled them by showing a different property and selling them another

RERA authorities told this newspaper that Mulchandani’s firm had also not followed the local rule of depositing sale proceeds of real estate properties into a government-shared escrow account and instead pocketed the entire money.

At least 20 NRIs, originally from Mumbai, had invested money ranging from US $1 million and above in residential-cum-commercial properties developed by Al-Fajer and marketed by Mulchandani.

The smallest of these properties is approximately 5000 square foot.

One particular complaint cites how Mulchandani allegedly sold apartments in a three-tower complex, showing the two completed towers as the properties that were for sale but allotting ownership documents of the third tower which has yet to come up.

Speaking to Mumbai Mirror RERA’s head of legal cell, Imad Husein said, “We have received complaints of 30 investors from India, Russia and the UK. Kabir’s company Dynasty Zarouni offered real estate properties at half the market price.

It also allegedly lured investors by misrepresenting a different property in the name of another. Each buyer has invested at least one million US dollars with Kabir’s firm.”

According to Husein, “We have invited all investors with similar complaints through advertisements in local newspapers to come forward, and have assured them that RERA will play an active role in safeguarding their money under law no 8 in line with the directives of Dubai’s ruler Sheikh Mohammed.”

Husein said, Mulchandani’s operations through Dynasty Zarouni involve sale of over 20 towers each consisting of 40 floors, approximating 20,000 residential and commercial units.

The RERA official said Dynasty Zarouni was also under scanner for irregularities in fund management.

“As per the rules of the Emirates, the money received from investors has to be deposited in an escrow account jointly held by the government with the developer.

The money is released only on delivery of the property.

Kabir Mulchandani and his company did not deposit money in the escrow account and hence it results in a case of breach of contract,” Husein said, adding that in such a scenario the developer may vanish leaving investors in lurch.

One of the NRIs, originally from Mumbai, who has filed a complaint with RERA said, on condition of anonymity:

“I was devastated to find that it is illegal for Dynasty Zarouni to collect money without the existence of an escrow account.

Not only does this leave my funds unsecured, in addition I have just been told by Al Fajer properties, the developers, that the total area being committed to me in the contract provided by cis inaccurate and is exaggerated by 30 percent,” the NRI added.

Mulchandani could not be contacted.

original published: Munbaimirrow.com

http://www.mumbaimirror.com/net/mmpaper.aspx?page=article&sectid=15&contentid=200808232008082302260752817e4982d

also published: zawya.com

http://www.zawya.com/Story.cfm/sidZW20080824000060/SecMain/pagHomepage/chnAll%20Regional%20News/obj2A17E941-F5E0-11D4-867D00D0B74A0D7C/

Gulfnews: Dynasty Zarooni gets clean chit

Dynasty Zarooni gets clean chit

By Saifur Rahman, Business Editor
Published: August 25, 2008, 23:12

Dubai:

Dynasty Al Zarooni Real Estate is considering legal action against some Indian publications and those behind an alleged ’smear campaign’ to malign its reputation, officials said.

The campaign has allegedly been launched by a former employee of Kabir Mulchandani, chairman of Dynasty Zarooni, who was fired for alleged ‘wrongdoing’, Gulf News has learnt.

Two Indian publications ran reports referring to some investors’ complaint that “he [Mulchandani] had misled them by showing a different property and selling them another”.

One of the reports said “Dubai’s Real Estate Regulatory Authority [Rera] is probing Mulchandani’s operations after nearly 30 NRIs from India, Russia and UK complained online”.

Dynasty Zarooni, formed in 2005, is a joint venture between Hilal Al Zarooni and Kabir Mulchandani. The company has been engaged in developing, buying and selling residential and commercial properties to wholesale investors and cashing in on soaring prices and growing demand that fetched solid returns.

“Dynasty Zarooni, having a real estate portfolio in excess of Dh20 billion, has been the target of a series of false accusations in relation to complaints from investors, with regards to their Ebony & Ivory project in Jumeirah Lakes Towers,” the company said in an e-mailed statement

The project is being developed by Al Fajer Properties, a leading property developer in the UAE, managed by its president Shaikh Maktoum Hasher Al Maktoum.

Over the past week there have been a number of internet blog stories and these culminating with a article in the Indian media, incorrectly quoting Rera officials, the company said.

The Ebony & Ivory development project is a Dh2.7 billion project, which was originally sold out within hours of its launch. “To date, the construction of all of the towers being developed by Al Fajer Properties is progressing rapidly,” the statement said.

Meanwhile, the Rera has given Dynasty Zarooni a clean chit.

“Dynasty Al Zarooni Real Estate has no violations relating to the registration of property brokers until August 25, 2008,” Rera said in a letter yesterday, a copy of which was obtained by Gulf News.

Hilal Al Zarooni, president of Dynasty Zarooni, told Gulf News, “We are pursuing legal action against those who are behind this campaign that is damaging our reputation.

“These imposters have not only targeted Dynasty Zarooni, but the UAE real estate market as a whole. The imposters should be brought to justice.” he said.

 

see also Video TV Agust 2008

http://www.zawya.com/video/default.cfm/sidVID20080826112123

Update: Dynasty Zarooni Jumeirah Lake Towers Plot H3 – G3 – Al Fajer Properties – original Comment at Skyscrapercity

original published: Skyscrapercity

http://www.skyscrapercity.com/showthread.php?p=24219792

FOR THE ATTENTION OF JUNIOR MEMBER : rohitd (aka: Rohit Dadakar)
The nature of the blog comments which you have posted regarding our company have been brought to my attention and I would like to very clearly, formally respond and clarify for the record each of your points to this audience.
The points you have made with reference to the Dynasty Zarooni Inc “Ebony & Ivory” development project located in Jumeriah Lake Towers, Dubai;UAE are incorrectly stated and for that matter I would like to clarify the actual facts pertaining to this project.

1. The “Ebony & Ivory” buildings were purchased by Dynasty Zarooni Inc from Al Fajer Properties LLC. The reference details of these projects are as follows:
Ivory 1 : Also known as Jumeriah Business Center – Plot G3-JBC8
Ivory2 : Also known as Jumeriah Business Center – Plot H1-JBC7
Ebony 1 : Also known as Jumeriah Business Center – Plot H3-JBC9

2. A 20% payment has been made to Al Fajer Properties LLC.

3. The project is Escrow compliant

4. This project has been sold onto Dynasty Zarooni Inc purchasers, who in turn, were assisted by Dynasty Zarooni Inc in the capacity of providing them with a 6 months time period to pay this 20% payment, without charge of any interest. Dynasty Zarooni Inc has already signed unit SPA’s (Sale & Purchase Agreement) with Al Fajer Properties LLC for every unit in the above aforementioned Towers. On receipt of this 20% payment, Dynasty Zarooni shall assign the unit SPA’s to the purchaser of the relevant unit.

5. With reference to the point relating to Area Differentials, it is clearly stated on the Dynasty Zarooni Inc Receipts’ provided to all purchasers, that a typical floor within this aforementioned Tower has the following clearly defined area designation:
Gross Area : 14,690 sq ft
Net Area : 11,314 sq ft
Thus, no purchaser of the Ebony1 (Project: H3-JBC9) will be surprised by this information as it remains entirely transparent to the purchaser throughout the purchase process.

Our records indicate that the blogger (rohitd – Member aka. Mr Rohit Dadakar.) is NOT a purchaser of any Ebony 1 unit in his own name (also known as Jumeriah Business Center – H3-JBC9 ) and thus the blog statement made by this person is wholly unfounded. We would ask Mr Rohit Dadakar to communicate his complete contact details, including passport details, correspondence information so that our Lawyers may take up this matter directly.

We would appreciate that any such queries regarding our companies projects be directed to us in the first instance and we would to happy to address any such genuine queries in order to avoid any misrepresentation in future being aired on the Internet in such blog channels, which are wholly incorrect in fact and furthermore clarify our companies’ standpoint. In future we would kindly request that the Moderator or Active Member within this on-line community, kindly verify that all facts are clearly confirmed in order to avoid future instances of erroneous statements.

N. Vishram
CEO
Dynasty Al Zarooni Real Estate LLC
Dubai; UAE

20th August 2008.