The False Story ? Mumbai Mirrow – Dynasty Zarooni Dubai
Posted by 7starsdubai on August 26, 2008
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
also published: zawya.com
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