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    • Criminal Complaint filed against Al Fajer Properties Sheikh Maktoum
      Criminal Complaint filed in Germany against Sheikh Maktoum Hasher Maktoum Juma Al Maktoum CEO of Dubai Developer Al Fajer Properties The Dubai Sheikh who mislead and extort a German Couple  Germany – Dubai 2011 A German elderly couple , today 80 + 50 years old who have been Dubai Tourists since a decade, bought in 2005 an apartment at Nakheel´s Dubai Residen […]
    • UAE: Human Rights Blogger, Sorbonne Lecturer Charged With ‘Humiliating' Officials
      source Human Rights Watch www.hrw.org (Beirut) - The United Arab Emirates attorney general should immediately drop all charges against five pro-democracy activists to halt their trial, Human Rights Watch said today. The charges of "humiliating" top officials relate solely to the defendants' peaceful use of speech to criticize the UAE governmen […]
    • Nakheel Dubai Sunland Case
      June 5, 2011After 21 hearings, Chris O'Donnell, the Australian chief executive of Dubai's major developer, Nakheel, came to the defence of his former colleagues Matthew Joyce and Marcus Lee. Mr Joyce and Mr Lee are accused of profiting from the sale of land that had been earmarked for a colossal high-rise development, which was to include the futur […]
    • Dubai Nakheel CEO decided to leave the company
      Dubai June 7, 2011 Nakheel said on Wednesday that its CEO Chris O'Donnell had left the company "after completing his contract terms". O'Donnell, an Australian who joined the developer in 2006, said he had decided to leave Nakheel following five years spent with the company, the statement added. O'Donnell has overseen a traumatic time […]
    • Owner of Dubai Developer Damac Hussain Sajwani files case against Egypt corruption ruling
      Dubai property developer Damac said on Tuesday it had filed an international arbitration case against Egypt over a land dispute and the conviction of its chairman and owner, Hussain Sajwani.A Cairo court last week sentenced Sajwani in his absence to jail and ordered him to pay a $40.5 million fine in connection with his 2006 purchase of land at Egypt's […]
    • Dubai Palm Jumeriah - Investors plan to take legal action
      Investors in Dubai Palm Jumeirah’s Golden Mile complex will this week serve the developer behind the project with a legal ultimatum to hand over their units or issue them with a refund.Up to ten investors in the luxury complex plan to issue Souq Residences with legal notice in a bid to force a resolution to a dispute that has been ongoing for more than a yea […]
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    This Website of the Blog 7starsdubai.wordpress.com and 7starsdubai.com content still existing media releases and comments from reputated press and websites only. The content of this Website focus to consumer protection for Investors of the Dubai Property market, the UAE and the Middle East. Press Article from the international Press who report about Fraud in relation with Property Investment and Real Estate Developer Investor Disputes in Dubai and the UAE as well reports from the Press about other criiminal acts and Civil Real Estate cases, Lawsuits before the Court in Dubai, the UAE or other countries. Furtheron we show reports about consumer protection and human rights in the Middle East. Actual Topics about the Unrest in Middle East. The information comprised in this section is not, nor is it held out to be, a solicitation of any person to take any form of investment decision. 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Archive for January, 2009

Dubai Property Buyers may move court for cancelled off-plan contracts

Posted by 7starsdubai on January 30, 2009


http://business24-7.ae/Articles/2009/1/Pages/01282009_c77c5faf7c0e4120b77817701e56af04.aspx

Property buyers can contest their “terminated” off-plan contracts, signed after August 31, 2008, in the newly set-up Property Court, but will have to go through the Dubai Land Department (DLD), a senior government official said.

“The purchaser will be further able to seek compensation from the Property Court if he establishes a ground for the termination,” Emad Eldin Farouq, Senior Legal Counsel, Dubai Land Department, told Emirates Business.

In November 2008, the Land Department in an administrative circular, said developers – not buyers – would have to initiate the official procedure to cancel the off-plan transactions. But for sales contracts, signed before August 31, 2008, the terms and conditions of the contract will be applicable for the two parties under the UAE Civil Code. However, these would not have to go through the DLD.

In the internal administrative circular, the department gave the interpretation of the meaning and practical application of Article 11 of the Law No.13 regulating the interim real estate registration. According to this circular, in case of a termination of an off-plan contract, the developer shall be entitled to 30 per cent of the purchase price plus 30 per cent of the any further monies paid above 30 per cent of the purchase price.

“In case of a cancellation of an off-plan contract where the purchase price is Dh1 million and the purchaser has paid 40 per cent of the property value, then the maximum claim the developer can make is of Dh330,000 (30 per cent of Dh1 million and 30 per cent of the remaining 10 per cent),” he said.

“If a buyer wants to contest this, he can go to the Property Court which shall apply the civil jurisdiction on this. Nobody can prevent the buyer from going to the court. Further, the Property Court may or may not agree with this and they can choose to either cancel these terms or they can adopt it or they can apply any other rules to this. The Property Court will look at it based on the rules and regulation in place under the Civil Code Law,” added Farouq.

Legally any agreement can be terminated either amicably, voluntarily or can be terminated by a court order based on the facts.

Under the Civil Code, the purchaser has the right to terminate the contract if there is a breach by the seller. The purchaser is entitled to refer the matter to the appropriate court with jurisdiction (which is now the Property Court)

Mohammad Kawasmi, Senior Associate Al Tamimi & Company, said: “We are not aware if the administrative circular issued by the DLD will hold true in the Property Court and they can choose to override the circular.”

Earlier this week, Farouq told this newspaper that investors facing cash-flow constraints can approach the Dubai Land Department for rescheduling payments for their properties.

Register online

Developers will have to register their off plan and completed units through the Dubai Land Department’s online registration system, said Farouq.

Called Oqood, the new system will enable effective implementation of Law No13 of 2008 for regulating the interim real estate register in the emirate.

Developed by Emirates Real Estate Solutions for the Dubai Land Department, the Oqood online interim registration process will lead to minimising conflicts arising between developers, investors and sellers, while contributing to cutting down the escalating off-plan selling and reselling costs.

Charges will be the same as levied by the Dubai Land Department – one per cent of the total value paid by the seller and one per cent to be paid by the consumer. Following the issuance of Law No 13, developers now have to register all their units prior to launch of the project and only then can they proceed with their sales.

The law aims to create further consumer ease and protection within the Dubai realty market.

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The number of property developers registered in Dubai has fallen by about 40 per cent in two months

Posted by 7starsdubai on January 29, 2009


http://www.thenational.ae/article/20090129/BUSINESS/939819250/1005

The number of property developers registered in Dubai has fallen by about 40 per cent in two months, according to the Real Estate Regulatory Agency (RERA).

Some firms were weeded out as part of a “clean-up” by the agency because they were unlikely to start their projects, while others fell victim to the economic crisis.

Marwan bin Ghalita, the chief executive of RERA, said there were now about 500 developers registered in Dubai, compared with more than 800 in November.

“Some of the companies were registered but have now decided they don’t want to develop because of liquidity, which is a good thing,” he said. “And others were forced to cancel because we were sure that their developments would never be real.”

Mr Ghalita did not reveal which firms had been forced out of the emirate, but said company names would be released in the future. He also did not say whether any of the developers who were no longer registered had made any sales on their proposed projects.

The authority planned to trim the number of developers further through a new system that would rank them according to financial stability and market experience, he added.

The system is aimed at giving RERA greater control and reinforcing investor confidence in a sector hit by falling prices, fraud and contractual disputes.

“We will make the number even less. The [ranking] system will be ready very soon… the cleaning is going on,” he said. “So before people invest in a project, they will see what the rating of the developer is and will be able to base their decision on that.”

Not only were the number of developers falling, but those still registered with the authority were scaling back the number of projects in the pipeline, he added. More than 25 companies have cancelled projects since the global financial crisis hit Dubai’s property sector.

Only those with a strong sense for the market and its feasibility were expected to survive the downturn, he said.

“Some of them bought land and wanted to develop two or three projects, but are now just doing one.”

Investor confidence in off-plan projects has been harmed by several cases of developers failing to proceed, or not keeping promises, especially relating to projects launched before RERA was established in 2007.

RERA established a system of escrow accounts in July 2007, which are designed to ensure that money paid by home buyers is used on the specific project. Hundreds of property developments launched before that date enjoy no such protection.

Disputes over long-delayed projects have been exacerbated by the downturn, leaving hundreds of investors struggling to cancel contracts and get refunds on instalments already paid.

In an attempt to stem a wave of cancellations by buyers, RERA issued an interpretation of an existing law in November so that buyers who defaulted on a property purchase would forfeit 30 per cent of the price of the unit and 30 per cent of any payments on top of that.

It is also planning two new regulations that would make it difficult for property prices to overheat in the future. One proposed regulation would require developers to own all the land and to have built 20 per cent of the project before it could begin sales. The other proposed regulation would tie payment plans to construction milestones.

Last year, several high-ranking Dubai property executives and financiers were removed from office and arrested as part of a fraud investigation. Tamweel, the nation’s second-largest home-loan company, lost most of its management due to the investigation and yesterday announced 57 job cuts.

Earlier this month, RERA announced a regulation, drawn up with the Department of Economic Development, banning freelance property agents from operating in Dubai. The move is intended to improve transparency for property owners and tenants.

agiuffrida@thenational.ae

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Protected: Dubai moves to soothe nerves in property ? Press conference Emirates Towers 27.Jan.2009

Posted by 7starsdubai on January 27, 2009


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UAE – Need to Explicitly Ban Imprisonment of Journalists Stressed

Posted by 7starsdubai on January 26, 2009


http://www.zawya.com/story.cfm/sidZAWYA20090126043131

26 January 2009


ABU DHABI/DUBAI –

Rashid Al Oraimi, editor-in-chief of Abu Dhabi-based Arabic daily Al Ittihad, has criticised the draft of the amended media law.

 

 

 

In a letter sent to the National Media Council (NMC), Oraimi, who is still waiting for a reply, hopes his remarks would be considered by the cabinet before promulgating the law.

 

Without divulging the details of the letter, he said he has stressed on the keen interest of journalists on the protection of their rights.

 

Sami Al Riyami, deputy chairman of the UAE Journalists Association and editor-in-chief of Dubai-based Al Emarat Al Youm, said: “The draft law needs to be rewritten, explicitly banning imprisonment of journalists, in pursuance of the directives of His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.”

 

There is a lot of ambiguity. “For instance, it does not specify explicitly that no journalist should be jailed as per the ruling by Shaikh Mohammed. I see this as a step backward after all the great achievements our country has been able to make at the international level. This point has to be specified in a clear and explicit article.”

 

The proposed law does not have any advantages, according to Farid Wagdy, chief reporter of Al Bayan Arabic newspaper.

 

Wagdy believes the law has dwarfed the legal process that guarantees the freedom of expression and speech, especially through the print media. “At first look, we might think that it (the law) does not relate to media but to the organisation issuing necessary licences pertaining to media work,” he said.

 

“The media in the UAE has almost completed a journey of four decades and played a prominent role in monitoring the government’s performance and highlighting any corruption and shortcomings.”

 

Wagdy added the media has made many achievements throughout the establishment of the federation, a fact that makes it of utmost importance as it complements the legislative, executive and judicial authorities.

 

The UAE is heralding an era of democratic reform, which requires both the state and the media to walk side by side, Wagdy said. “The draft law has omitted that point completely.”

 

Besides, it has not explicitly reflected Shaikh Mohammed’s ruling of not imprisoning journalists for reasons related to work. “The draft law leaves the door open for the judge to choose between pronouncing a verdict according to the penal law or the Code of Organising the Media Activities. This makes the journalist subject to both laws, which exposes him to prison as per the penal law.

 

“I can’t see any advantage in this law. It has neglected the main objective that is to back the role of the local media.”

By Adel Arafah & Mary Nammour

© Khaleej Times 2009

 

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Protected: RERA Dubai

Posted by 7starsdubai on January 26, 2009


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Protected: Role of the media in Dubai must be acknowledged

Posted by 7starsdubai on January 22, 2009


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Dubai house prices to fall 60% from peaks – Shuaa

Posted by 7starsdubai on January 18, 2009


original published Arabian Business

http://www.arabianbusiness.com/543957-dubai-real-estate-prices-to-fall-60-from-2008-peaks-shuaa

Real estate values in Dubai could plummet by 60 percent by the end of 2009, according to UAE investment bank Shuaa Capital.

Property prices in the emirate have already dived by 40 percent and rents could fall by 20 percent over the next two years, Shuaa analyst Roy Cherry told Arabian Business on Sunday.

“Prices in Dubai could lose 50-60 percent by the end 2009 from their peak last summer.

“With negative population growth, expected delivery of 35,000 units in 2009, declining occupancy rates, lack of mortgage funding, high job insecurity, and cancellation of visa guarantees for home buyers, it is going to be tough for the market to show resilience at least in the first half of 2009.”,” he said.

Declining occupancy rates to around 80 percent would cause rents to ease, he added.

Global economic unrest has burst Dubai’s six-year long property bubble as well as hitting the wider real estate market in the UAE.

Cherry said Abu Dhabi would not be immune from the real estate slump, predicting prices have so far plunged 15 percent and could slide a further 20 per cent.

Prices would start to stablise in the final quarter of 2009 or early 2010, Cherry said.

Echoing a report by Swiss investment bank UBS last week, Cherry predicted Dubai’s population could fall five percent this year on job losses, with the overall UAE population easing 1 to 1.3 percent.

Dubai has a population of about 1.4 million.

UBS forecast there could be an 8 percent dip in Dubai’s population this year, mainly on the fall-out from the construction and real estate sectors.

Also last week, property services firm Colliers International reported an 8 percent dip in Dubai property prices in the final quarter last year.

Separate data published last week from fellow real estate consultant Asteco said rental growth slowed last year in Abu Dhabi and Dubai, after massive rises in the last few years.

It said rents for apartments and villas grew at 4 percent and 8 percent in 2008.

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UAE Abu Dhabi Sheikh Mansour lost £440MILLION

Posted by 7starsdubai on January 18, 2009


original published The SUN      UK 18-01-2009

http://www.thesun.co.uk/sol/homepage/news/article2142640.ece

MANCHESTER City owner Sheikh Mansour lost £440MILLION yesterday — nearly DOUBLE what he is set to spend on Brazilian soccer ace Kaka.

 The Arab tycoon, who hopes to sign AC Milan’s Kaka in a £243million deal, was stunned as Barclays shares crashed by 25 per cent — wiping £2.7BILLION off the bank’s market value.

Got a story? Email: talkback@the-sun.co.uk   The SUN UK

read more: 

http://www.thesun.co.uk/sol/homepage/news/article2142640.ece

 

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What is a Fraud ?

Posted by 7starsdubai on January 17, 2009


http://en.wikipedia.org/wiki/Fraud

Definition Fraud

In criminal law, fraud is the crime or offense of deliberately deceiving another in order to damage them – usually, to obtain property or services unjustly. [1] Fraud can be accomplished through the aid of forged objects. In the criminal law of common law jurisdictions it may be called “theft by deception,” “larceny by trick,” “larceny by fraud and deception,” or something similar.

Fraud for profit involves industry professionals. There are generally multiple loan transactions with several financial institutions involved. These frauds include numerous gross misrepresentations including: income is overstated, assets are overstated, collateral is overstated, the length of employment is overstated or fictitious employment is reported, and employment is backstopped by conspirators. The borrower’s debts are not fully disclosed, nor is the borrower’s credit history, which is often altered. Often, the borrower assumes the identity of another person (straw buyer). The borrower states he intends to use the property for occupancy when he/she intends to use the property for rental income, or is purchasing the property for another party (nominee). Appraisals almost always list the property as owner-occupied. Down payments do not exist or are borrowed and disguised with a fraudulent gift letter. The property value is inflated (faulty appraisal) to increase the sales value to make up for no down payment and to generate cash proceeds in fraud for profit.

Marriage Fraud can take several forms and is the act of entering a marriage for personal gain rather than a genuine desire to enter into a sincere marital relationship. Marriage Fraud is usually associated with obtaining immigration benefits. In the United States, marriage fraud for immigration purposes is punishable under INA §204(c)(1) and the Immigration Marriage Fraud Amendments of 1986. Possible criminal penalties include $250,000 and 5 years in prison as well as deportation and a permanent bar against receiving future immigration status. Marriage Fraud can be either unilateral or bilateral Unity and Immigration Policy in the United States. In a unilateral marriage fraud, only one party is aware of the fraud and the fraud is against both the immigration service as well as the other party. The innocent party may file a lawsuit and/or annulment of the marriage. In a bilateral fraud, both parties are aware of it and both parties are subject to criminal penalties.

In academia and science, fraud can refer to academic fraud – the falsifying of research findings which is a form of scientific misconduct – and in common use intellectual fraud signifies falsification of a position taken or implied by an author or speaker, within a book, controversy or debate, or an idea deceptively presented to hide known logical weaknesses. Journalistic fraud implies a similar notion, the falsification of journalistic findings.

Fraud can be committed through many methods, including mail, wire, phone, and the internet (computer crime and internet fraud). The difficulty of checking identity and legitimacy online, the ease with which hackers can divert browsers to dishonest site and steal credit card details, the international dimensions of the web and ease with which users can hide their location, all contribute to making internet fraud the fastest growing area of fraud.

Acts which may constitute criminal fraud include:

Fraud, in addition to being a criminal act, is also a type of civil law violation known as a tort. A tort is a civil wrong for which the law provides a remedy. A civil fraud typically involves the act of intentionally making a false representation of a material fact, with the intent to deceive, which is reasonably relied upon by another person to that person’s detriment. A “false representation” can take many forms, such as:

  • A false statement of fact, known to be false at the time it was made;
  • A statement of fact with no reasonable basis to make that statement;
  • A promise of future performance made with an intent, at the time the promise was made, not to perform as promised;
  • A statement of opinion based on a false statement of fact;
  • A statement of opinion that the maker knows to be false; or
  • An expression of opinion that is false, made by one claiming or implying to have special knowledge of the subject matter of the opinion. “Special knowledge” in this case means knowledge or information superior to that possessed by the other party, and to which the other party did not have equal access.

Common law fraud has nine elements: (1) representation of an existing fact; (2) its materiality; (3) its falsity; (4) the speaker’s knowledge of its falsity; (5) the speaker’s intent that it shall be acted upon by the plaintiff; (6) plaintiff’s ignorance of its falsity; (7) plaintiff’s reliance on the truth of the representation; (8) plaintiff’s right to rely upon it; and (9) consequent damages suffered by plaintiff. Most jurisdictions in the United States require that each element be proved with clear, cogent, and convincing evidence (very probable evidence) to establish a claim of fraud. The measure of damages in fraud cases is to be computed by the “benefit of bargain” rule, which is the difference between the value of the property had it been as represented, and its actual value. Special damages may be allowed if shown proximately caused by defendant’s fraud and the damage amounts are proved with specificity.

In the UK a report concluded that the total costs of fraud and dealing with fraud in the year 2005-2006 was at least 13.9 Billion GBP

Read the rest of this entry »

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Prosecution looks into Dynasty Zarooni Dubai fraud claims

Posted by 7starsdubai on January 17, 2009


original published 7days 13. Jnauar 2009

http://www.7days.ae/storydetails.php?id=72375%20%20%20%20&page=local%20news&title=Prosecution%20looks%20into%20fraud

ebivpage031

The alleged fraud case against the chairman of Dynasty Zarooni, is now under investigation by Dubai Public Prosecution, a spokesperson at the office confirmed.

A lawyer for the comp-lainants told 7DAYS that the investigation had begun with questions for the investors, who claim that the chairman, Kabir Mulchandani, defrauded them of up to dhs450 million ($123 million).

Salem Al Shaali added that he could not tell the number of investors in the case as there are “new complaints every day”.

Al Shaali also said there was a second suspect in the case, and that some investors had informed him that this suspect had already fled the country.

The law firm, Al Shaali and Company, also told newswire Zawya Dow Jones that Mulchandani is being questioned on two counts, both subject to the Federal Penal Code and Dubai’s property laws.
The first case relates to the allegations that the membership club Mulchandani has admitted to running was sold to a small group of wealthy investors under false pretences, and that they were promised large returns.

The second case involves the selling of property at the dhs2 billion Ebony and Ivory development in Dubai’s Jumeirah Lake Towers district.
According to Zawya Dow Jones, Al Shaali said that Mulchandani took deposits for 20 per cent of the property but failed to deliver the project.

Dubai Public Prosecution confirmed they had started the investigation.

Dynasty Zarooni said it preferred not to comment until charges had been brought.

Posted in Dubai, Kabir Mulchandani | Tagged: , , | Comments Off on Prosecution looks into Dynasty Zarooni Dubai fraud claims

Forbes: ‘Madoff Of The Mideast’ Denies Charges

Posted by 7starsdubai on January 15, 2009


original published Forbes 14-01-2009

http://www.forbes.com/facesinthenews/2009/01/14/mulchandani-zarooni-dubai-markets-face-cx_ll_0113autofacescan01.html

A representative of Kabir Mulchandani hits back at accusations of fraud.

As dozens of angry investors clamor for their money back from Dubai-based property mogul Kabir Mulchandani, whom they accuse of being a fraudster, the stage seems to be set for a Middle Eastern version of the Bernie Madoff scandal. But those close to Mulchandani are adamant that upcoming legal proceedings will clear his name.

Mulchandani has been detained by the authorities in Dubai since Friday, pending a bail hearing, following claims of fraud from around 15 to 20 clients. But a spokesman for his company, Dynasty Zarooni, told Forbes on Tuesday that the allegations were groundless, instead suggesting these investors were desperate to get their money back by any means in the face of mounting losses on the Dubai property market.

“All these charges are baseless,” said the spokesman, from the company’s offices in Dubai. “All those who have lost money on the real estate crash are trying to get out of their future commitments. In the due course of time, the truth will prevail.”

These investors reportedly claim to have lost more than $100 million to Mulchandani and his business partner, Hilal al-Zarooni. One client told The Times Of India that he had made payments on a supposedly half-completed building, only to later find that the actual site was still a hole in the ground.

According to Dynasty Zarooni, however, all the paperwork shows clearly which plots were sold to which client and that no attempt was made to disguise their state. The company did not develop the properties, instead buying and reselling planned projects from developers such as Al-Fajer Group, a well-respected name with links to Dubai’s ruling family. Clients made payments to Dynasty Zarooni as the projects were completed, the company said.

Dubai’s property boom has been deflating rapidly in the midst of the financial crisis, with projects getting delayed or canceled as financing dries up and prices plummet. Consultancy firm Colliers International said on Tuesday that Dubai house prices had fallen 8.0% over the last three months, the first quarterly decline witnessed in two years.

And just as Bernie Madoff was chewed up and spat out when the market went south, so Dubai is likely to throw up more white-collar executives with their reputation tarnished as the crisis bites. The question is whether the emirate’s opaque justice system will allow for true justice to be done: Zack Shahin, former chief executive of real-estate developer Deyaar, had reportedly still not been charged at the end of December after he was first arrested in March.

The Associated Press contributed to this article

Posted in Dubai Real Estate Scandal, Dynasty Zarooni, Ebony Ivory Towers Dubai, Fraud, Jumeirah Business Centre, Kabir Mulchandani, Maktoum Hasher Maktoum | Comments Off on Forbes: ‘Madoff Of The Mideast’ Denies Charges

Dubai cancels 1,500 work permits daily

Posted by 7starsdubai on January 15, 2009


published 14-01-2009

http://zawya.com/story.cfm/sidZAWYA20090114032405/Dubai%20Cancels%201%2C500%20Work%20Permits%20Daily

14 January 2009
DUBAI: An average of 1,500 work permits and visas are being canceled in Dubai each day as companies lay off employees in the wake of the global financial crisis.

 

 

The number is expected to rise in coming months as thousands of labor complaints currently logged at the Ministry of Labor get processed. Adding to that figure will be the thousands of employees who have been made redundant but are searching for other jobs. Many companies have given redundant employees a grace period of two to three months to look for alternative work. Jobs are, however, rare to find with most companies freezing recruitment.

 

An official from the Ministry of Labor told Arab News that they started seeing a rise in the cancellation of visas in late October. “On some days, we cancel more than 2,000 permits,” he said.

Read the rest of this entry »

Posted in Dubai | Comments Off on Dubai cancels 1,500 work permits daily

Bouncing towards a jails boom in Dubai

Posted by 7starsdubai on January 14, 2009


original published: Evening Standard UK 14-01-2009

http://www.thisislondon.co.uk/standard-business/article-23618915-details/Bouncing+towards+a+jails+boom/article.do

Even when the real estate bubble was inflating, Dubai police were arresting people over property fraud. Now the bubble has burst, the numbers could well rise.

The latest case surrounds Dynasty Zarooni, which investors claim defrauded them of more than $100 million. They say promised returns from tower blocks in Dubai and its satellite towns never materialised. Hilal Al Zarooni, one of the company founders, denies any wrongdoing. Police say they’ve arrested company chairman Kabir Mulchandani, but no formal charges have been made.

It’s part of a wider campaign against rogue property deals that began last March with the arrest of Zack Shahin, chief executive of developer Deyaar. Since then, senior executives from a string of companies have joined him in the cells, including Tamweel, Sama Dubai and Nakheel.

The Dubai government owns significant stakes in each of them. Indeed, the probe has stretched as far as JPMorgan. A senior banker was held as part of the probe in summer 2008, although the investigation relates to his previous job with a subsidiary of Dubai Islamic Bank — also backed by the Dubai government.

No one has yet stood trial, so the details remain sketchy. And while court cases may well reveal some wanton criminal scams, others may be guilty of nothing more than business failure. That’s because the UAE’s bankruptcy law is crude at best. Failing to pay debts is a criminal offence, with no provision for personal bankruptcy.

Businessmen and women who bounce cheques can and do end up in prison.

This hasn’t been a major problem in Dubai, as most individuals and companies have done well, certainly over the past decade or so. Now it is, as the economy slows, companies go bust and thousands of people lose their jobs. If the UAE doesn’t bring bankruptcy rules up to speed, one area of property development is sure to boom: construction of debtors’ jails.

* As recessions go, it’s as shallow as they come. Investment bank EFG-Hermes says the UAE economy will shrink by 0.04% this year. Still, after years of double-digit growth, it’s sobering. EFG economist Monica Malik says Opec quotas will curb oil production, and real estate and tourism will slow down. One crumb of comfort: she says growth will return next year, at about 4%.

* Not all foreign investors have deserted Dubai. Reports suggest that, wait for it, Spice Girl Geri Halliwell may be opening a nightclub in the city with new boyfriend Nick House, a founder of London’s Mahiki.

Posted in Dubai, Kabir Mulchandani | Comments Off on Bouncing towards a jails boom in Dubai

Something about the 20 % deposit mentioned by Dynasty Zarooni

Posted by 7starsdubai on January 13, 2009


In a Forum of Skyscrapercity this comment was left directly by Dynasty Zarooni August 20, 2008

http://www.skyscrapercity.com/showthread.php?p=24219792

FOR THE ATTENTION OF JUNIOR MEMBER : rohitd

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 ………) 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 …. 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.

Posted in Dubai, Jumeirah Business Centre | Comments Off on Something about the 20 % deposit mentioned by Dynasty Zarooni

Dynasty Zarooni – Al Fajer Properties -Dubai Property Tycoon Mulchandani Held; $123M Scam Alleged

Posted by 7starsdubai on January 12, 2009


By Stefania Bianchi

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)–Dubai’s Public Prosecution is detaining Kabir Mulchandani, chairman of Dynasty Zarooni Real Estate, amid allegations he defrauded investors of up to 450 million U.A.E. dirhams ($123 million), according to lawyers for the investors, government officials and one of his business partners.

His detention is the latest in series of arrests in Dubai related to real estate and finance, but there’s no evidence at present Mulchandani’s arrest is related to any of the previous cases.

Mulchandani, who couldn’t be reached for comment, has previously denied any wrongdoing.

Hilal Al Zarooni, Mulchandani’s local partner in Dubai, said in a phone interview with Zawya Dow Jones “there is no evidence against the company. We sold everything legally.”

Al Zarooni confirmed that Mulchandani is being held for questioning in Dubai, adding that he hasn’t been contacted by authorities on the matter.

Ali Al Hashimi, an attorney for Global Advocates & Legal Consultants who are representing Dynasty Zarooni, also denied that there had been any wrongdoing on the part of his client in a phone interview.

Dubai police officials told Zawya Dow Jones Sunday that Mulchandani has been transferred from Jebel Ali police station to the custody of Dubai’s Public Prosecution pending an investigation of his case.

According to law firm Al Shaali & Co., which is acting on behalf of the investors pursuing Mulchandani who have complained to the police, he is being questioned on two counts both subject to the Federal Penal Code and Dubai’s property laws.

The first case relates to allegations that he conned a small group of wealthy investors into pledging large sums of money with the promise of a hefty monthly return.

The second case involves the selling of property at the AED2 billion Ebony and Ivory development in Dubai’s Jumeirah Lake Towers district. According to Salem Al Shaali, the lawyer handling the case at Dubai-based Al Shaali & Co., Mulchandani took deposits for 20% of the property but failed to deliver the project.

A visit to the site of the project by Zawya Dow Jones confirmed that no work was underway. According to the lawyers, Mulchandani had shown investors other buildings under construction in Dubai an effort to convince them that the project was ongoing.

Jaydeep Anand, Dynasty Zarooni’s chief operating officer, declined to comment on whether Mulchandani was being held when called by Zawya Dow Jones.

“I’m not the right person to comment on this,” he said and referred the call to Rajesh Gupta, Dynasty’s chief financial officer. Gupta didn’t answer calls to his mobile.

Mulchandani was initially held by police earlier last week for an alleged liquor-related offense and bouncing a check for an undisclosed amount, which is an offense in the United Arab Emirates, an official at Dubai’s Public Prosecution told Zawya Dow Jones on Tuesday.

He was later released on bail for AED46 million, but was re-arrested Thursday afternoon after further cases relating to the Ebony and Ivory development were brought against him by investors, according to Salem Al Shaali, a lawyer at Al Shaali & Co.

Al Shaali said Mulchandani’s bail has now been raised to AED76 million.

Investors interviewed by Zawya Dow Jones who were involved with Mulchandani say they paid AED300,000 a month into the program for which Mulchandani promised a return of a million dirhams a month after the first six months in September.

The investors, who asked not be identified, said Mulchandani had promised to invest their funds in Dubai real estate projects but had failed to deliver any returns, or their initial capital.

According to the allegations being made by Al Shaali’s clients Mulchandani got a group of 12 investors to pay AED30 million in deposits for another real estate project in Dubai, called Al Quorashi Tower. According to Al Shaali, the project never existed.

Earlier this year, Dubai’s Real Estate Regulatory Authority, or Rera, cleared Dynasty Zarooni of any wrongdoing after two Indian publications ran reports that some investors had complained Mulchandani had misled them by showing one property and selling them another.

Officials at Rera were unavailable for comment when called.

Big Advertising Spend

Dynasty Zarooni was created in September 2007 with the merger of the Hilal Al Zarooni Group and the Bahamas-registered business consultancy firm Dynasty Enterprises Inc. The company had a net equity of 1.35 billion U.A.E. dirhams ($367.5 million) at the time of merging, according to Zawya.com data.

Dynasty Zarooni was the country’s top spender in advertising during the first half of 2008, overtaking Emaar Properties PJSC (EMAAR.AI).

According to the Pan Arab Research Centre, the company’s ad spend for the first six months of 2008 was estimated at $10.58 million (AED38.8m). Leaping from an almost non-existent advertising spend in 2007, the new advertising budget accounts for around 1.8% of the company’s total business of AED21 billion.

Investors interviewed by Zawya Dow Jones said that Dynasty Zarooni’s prominent advertising campaigns in Dubai, which showed pictures of the Ebony and Ivory real estate project under construction, had played a major factor in their decision to invest with Mulchandani.

By Stefania Bianchi, Dow Jones Newswires; +971 4 3644967; stefania.bianchi@dowjones.com

(Tahani Karrar and Majdoline Hatoum also contributed to this item).

Copyright (c) 2009 Dow Jones & Co.

(END) Dow Jones Newswires

11-01-09 1625GMT

 

 

Posted in Dubai, Jumeirah Business Centre, Kabir Mulchandani | Comments Off on Dynasty Zarooni – Al Fajer Properties -Dubai Property Tycoon Mulchandani Held; $123M Scam Alleged

Another nice statement from Dynasty Zarooni

Posted by 7starsdubai on January 11, 2009


original published 7days.ae January 11, 2009

http://www.7days.ae/storydetails.php?id=72200&page=local%20news&title=Chairman%20held%20over%20fraud%20claims

Dubai police are holding the chairman of Dynasty Zarooni, Kabir Mulchandani, amid ongoing accusations of fraud at the company from investors, according to reports.

The firm’s lawyer told 7DAYS that the “allegations are groundless, and we are preparing our legal case”.
Reports yesterday restated the allegations that the company had bounced cheques and made guarantees of returns to investors.

Last week, Mulchandani told 7DAYS that there was “no question” of any cheques from Dynasty Zarooni bouncing.
“If somebody can produce a bounced cheque of even one dirham, add five zeroes to that and we’ll give that amount,” he said.

“Not only have we not bounced any cheque, we have not deferred or delayed any single payment, we are the only company that is on time with every single payment, not even late by a day, to all properties we have purchased – despite market conditions.”

It is alleged that clients were requested to invest dhs300,000 per month with Mulchandani, which he promised would return profits of a million dirhams a month after the first six installments.

Mulchandani claims that these payments were a membership fee that gave investors first right of refusal on new properties at pre-launch prices from Dynasty Zarooni.

However, an investor told 7DAYS yesterday that even a membership such as this would be illegal for the firm to run.
 “He [Mulchandani] is not allowed to run a membership, the company is a DMCC-registered company and the approved activity for the company is business consultancy management,” he said.

He added that around 40 investors had lodged complaints against the firm.

On Wednesday, Mulchandani said that the number of investors making complaints about the company was irrelevant without evidence.

“Unfortunately the situation that we have is that obviously they will all now form some sort of a union, because they all don’t want to pay. So if there’s say ten people who don’t want to pay, that doesn’t make them right, that makes them wrong ten times over.

“You’d probably believe ten people but the fact is that if you need to see the documents,” he said.
He also said that Dynasty Zarooni had not tried to act outside its remit as a buyer and seller of properties.
“I’ve categorically said this every time, our sales team know it and our documents say it – we do not run an investment company.

“We buy and we sell, when you sell you transfer risk and reward. So the upside is yours, good luck to you and the downside is yours if it does happen and that’s unfortunate,” he added.

Mulchandani maintains that the investors now making criminal complaints against him are doing so because post-dated cheques given to the company for both the membership fee, and for properties they purchased, have bounced.

“The problem in this market is that people were all here for the bull run and you need to have seasoned people to deal with problems and not run around in a frivolous manner and make allegations that are clearly false just because they are not able to meet obligations,” he said.

Posted in Dubai, Kabir Mulchandani | Comments Off on Another nice statement from Dynasty Zarooni

Diary of a distressed property investor, Part II

Posted by 7starsdubai on January 9, 2009


original published: Kippreport.com

We know property investors are struggling, and for the most part, we know why. But what most us don’t know are the everyday struggles they’re going through. One investor agreed to write a journal of her experiences for Kipp for the next month. We asked her to be ruthless: she obliged.

We’ve withheld her name for legal reasons.

I went to Rera last week. And when I finally got someone to talk to me about my concerns, I was confronted with a Dubai truth: some government employees’ brains go on vacation well before the public holidays begin. I was advised to return after the New Year’s celebrations.

“Why?” I asked.

“It’s a holiday,” said a young attendant.

“What holiday? It’s the 29th (of December)?” I asked, a little hysterically.

I didn’t get a response from him. And that taught me another Dubai truth: any sign of hysteria, anger, disapproval or discontent on your part will result in an immediate breakdown of communication on theirs.

But rather than wait until 2009 to sort my property situation out, I decided to keep looking for answers and solutions to my problem. Here’s what I discovered:

Read the rest of this entry »

Posted in Dubai | Tagged: , | Comments Off on Diary of a distressed property investor, Part II

Dubai Developer Al Barakah insolvent

Posted by 7starsdubai on January 9, 2009


http://www.thenational.ae/article/20090108/BUSINESS/669514675/1005

Al Barakah, a property development company with more than a dozen projects in Dubai and Ajman yet to get off the ground, has told investors it is insolvent.

Lawyers acting for the company told the investors at a specially convened meeting last week that the company had at least Dh400 million of unsecured liabilities.
Investors said later they were disappointed that the company’s chief executive, Shariq Imran Khan, did not attend the meeting.

Mr Khan is being sought by Dubai Police for allegedly bouncing cheques totalling Dh60 million (US$16.33m).
Read the rest of this entry »

Posted in Dubai | Comments Off on Dubai Developer Al Barakah insolvent

RERA Dubai clamps down hard on developers

Posted by 7starsdubai on January 9, 2009


original published Arabian Business

http://www.arabianbusiness.com/542971-rera-to-clamp-down-on-developers

Dubai’s real estate watchdog is set to enforce further regulations to avert another property meltdown, it was reported on Wednesday.  

Under regulations being drawn up by the Real Estate Regulatory Agency (RERA) 20 percent of a building will have to be completed before sales can start, according to UAE daily, The National.

A further shake up of the payment plan structure will see investors having to pay a 30 percent lump sum with the remaining 70 percent paid in installments during construction.

The aim is to eliminate the spats that have taken place between buyers and developers in recent years, where the investor has stumped up nearly the full price of a property before construction has started, or when it has only just begun.

Read the rest of this entry »

Posted in Dubai | Comments Off on RERA Dubai clamps down hard on developers

It`s confirmed – Dynasty Zarooni Chmn Arrested, Police Says – Report

Posted by 7starsdubai on January 8, 2009


 http://zawya.com/Story.cfm/sidZW20090108000104/Dynasty%20Zarooni%20Chmn%20Arrested,%20Police%20Says%20-%20Report/Thursday, Jan 08, 2009

DUBAI (Zawya Dow Jones)–Dubai Police has arrested Kabir Mulchandani, chairman of Dubai property company Dynasty Zarooni Dubai-based Al Bayan newspaper reports Thursday, citing a senior police official.

“Dubai Police has arrested Kabir Mulchandani for fraud and bouncing checks’ accusations, and he is currently under investigation,” Al Bayan cites Colonel Khalil Al Mansouri, head of criminal investigations unit at Dubai Police, as saying.

“His case will be sent to the public prosecution soon to complete the investigation,” Al Bayan reports.

Zawya Dow Jones first broke the news of Mulchandani’s arrest on Tuesday.

The government has been investigating a handful of the city-state’s top real estate and lending firms, but Mulchandani’s arrest this week is not thought to be linked to these ongoing corporate investigations.

Newspaper Web site: http://www.albayan.ae

-Dubai Bureau, Dow Jones Newswires; +9714 3644964; djnews.dubai@dowjones.com

Copyright (c) 2009 Dow Jones & Co.

(END) Dow Jones Newswires

08-01-09 0912GMT

Posted in Dubai, Kabir Mulchandani | Tagged: , , | Comments Off on It`s confirmed – Dynasty Zarooni Chmn Arrested, Police Says – Report

Chairman Dynasty Zarooni arrested – Sources told Gulf News the complaints involve some Dh2.8 billion.

Posted by 7starsdubai on January 8, 2009


http://www.zawya.com/story.cfm/sidGN_08012009_10273415/Dubai%20Real%20Estate%20Company%20Chairman%20Denies%20Charge 

Thursday, Jan 08, 2009

Gulf News

 

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

Kabir Mulchandani told 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 told Gulf News.

The Federal Penal Code and the property laws issued lately are the legal grounds in this case, argued the lawyer.

Sources told Gulf News the complaints involve some Dh2.8 billion.

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

© Gulf News 2009. All rights reserved.

Posted in Dubai, Kabir Mulchandani | Comments Off on Chairman Dynasty Zarooni arrested – Sources told Gulf News the complaints involve some Dh2.8 billion.

A Statement to the so called ” criminal” complaints of Investors Dynasty Zarooni – Al Fajer Properties

Posted by 7starsdubai on January 8, 2009


Dear Victims of Dynasty Zarooni with the launch od Ebony Ivory Tower Plot H3 and G3, Jumeirah Lake Towers,by Dynasty Zarooni.

Your case with Al Fajer Properties start in March-April 2008, with you are saying false advertisements by Dynasty Zarooni and your purcahse in Units or Floors at Dynasty Zarooni Ebony / Ivory Towers Jumeirah Lake Towers Plot H3 – G3.

It`s not a secret that you start with your complaints in June 2008, and not just now, after the so called financial crisis .

The original documents we hold in hands is not a direct matter with Dynasty Zarooni but it can be seen in the simiular, because this matter is direct linked to long ongoing story around the Plots H3 and G3 in Jumeirah Lake Towers. The investors who are still in this disaster didn`t ever complaint at the police in Dubai, as ther is n sense to do so – the so called untouchable ” backing” in Dubai for the Developer seems to be a special !  

WE think that you, at this time havent been aware, that Al Fajer Properties has promised and 100 %contractual agreed with DMCC the following to protect the rights of the Ivestors left from Nakheel Flamingo and Falcon Towers on this Plot H3 and G3 in Jumeirah Lake Towers.

“Plot H3 Jumeirah Lake Towers launched in 2004 directly by Nakheel , Tower named Falcon Tower
Full information here:
http://www.skyscrapercity.com/showthread.php?t=138300

and the letter of DMCC ( 100 % Government owned company) dated August 2005 to all investors of Falcon Tower Plot H3, Jumeirah Lake Towers:
http://www.skyscrapercity.com/showthread.php?t=138300&page=3

As you can read out of the options from this letter, DMCCA said:
…as a result of these changes, we would like to offer you the following options:

i.) Transfer to new developer…………….

This developer DMCC found October 2006,confirmed in a letter from DMCC to an investor 22. October 2005, was Al Fajer Properties.

DMCC wrote end 2006

Dear Mr…. with regards to your first query kindly refer to our letter 22, October 2006 in which we stated:
“Al Fajer Properties will developing the Falcon and Flamingo Towers with the same design. Consequently your apartment will be on the same specifications and price you and your initial pruchase with Nakheel.”
As for second query, pertaining to the issuance of a contract by Al Fajer Properties for your apartment, we ask you to be in touch with Ms. Kati Sebour of Al Fajer Properties. Kind regards Ysamine Hussain, Customer Service DMCC.

Until end of 2007, nobody from the Investors who have agreed to the transfer from Nakhee to Al Fajer Properties has been told that they are not willing to built the Towers as agreed , 100 % Residential Towers !

This was also the time Al Fajer starts to tell those investors a lot of stories – pushed them to sign a document which nobody would ever sign , because at least it had been null and void -with the only goal to kick them out – to have a free way – what was already in their mind. At least they start to act agressive in early 2008, also with the help of their lawyer Denton Wilde Sapte.

To this actions of Al Fajer Properties RERA Dubai is informed since March 2008. The investor in this case was at this time not aware that Al Fajer Properties has already started to launch this Towers completly new under changed names : Ebony and Ivory Towers.

Fact is, that at the time Al Fajer Properties  had still taken the agreement with Dynasty Zarooni for this both towers, and selling them complete to Dynasty Zarooni, that at this time the agreements of the former investors left from Nakheel on this Plots and 100 % confirmed by DMCC, have been still legal valid.

These Investors, who are still in and fighting for their rights, have become aware of this Act ( changing the names to Ebony and Ivoory, changing the complete use of the building into offices and no apartments, selling all units in this building Plot H3 and G3 to Dynasty Zarooni) – only by the Press in Dubai, when they give out the notice:
Dynasty Zarooni gets clean chit.

By the acknowledge of this and some deep invstigations to get evidence – for them it became clear – what was the real reason of the agressive acts – Al Fajer Properties forward to them Januar – March 2008.

As Al Fajer Properties is still acting illegal against this investors , on which RERA is aware, and Al Fajer Properties try to denigrate them. Those investors have collect all evidence by showing only all and only original correspondence and documents  starting from the purchase at Nakheel 2005 , the correspondecne with DMCC up to the transfer to Al Fajer Properties and the agressive acts of today. The numer of original documents will be around 120 pages

It`s very interesting to read in the Dubai Press, that Dynasty Zarooni`s Chairman, is calling the complaints of those Investors “Criminal Complaints” in the public.Statements like this are acts of discrimination  under the header “Human Rights”  and should be filed outside of Dubai.

* Al Fajer Properties is a private Dubai Developer owned by Sheikh Maktoum Hasher bin Juma Al Maktoum
* Dynasty Zarooni is the business partner for the project Al Fajer Propteries Towers Plot H3 + G3 , today named Ebony and Ivory Tower, before Jumeirah Business Centre 8 + 9 , Jumeirah Lake Towers Dubai

Posted in Dubai, Jumeirah Business Centre | 1 Comment »

Dubai tourists warned over tough drug stance

Posted by 7starsdubai on January 8, 2009


original published Jan. 08, 2009 The Independent UK

http://www.independent.co.uk/news/world/middle-east/dubai-tourists-warned-over-tough-drug-stance-779910.html

Poppy seeds in food, common over-the-counter medications and traces of banned substances are enough to warrant four-year prison sentences in the United Arab Emirates, travellers were warned today.

 

Visitors to Dubai and Abu Dhabi are now being advised to “take extreme caution” and “avoid arrest for ‘possession’ of a controlled substance”.

The advice, issued by the legal charity Fair Trials International, follows a recent spate of arrests and imprisonment.

The charity, which assists those facing trial abroad, has urged travellers to ensure they are completely free of any substances prohibited by the country they are visiting.

Earlier this week, a 43-year-old from Middlesex was imprisoned for four years after 0.003g cannabis was found in the tread of his shoe by customs officials in Dubai.

Keith Andrew Brown was stopped in transit from Ethiopia to London last September.

The amount of the drug found on his shoe would not be visible to the naked eye and weighs less than a single grain of sugar.

Read the rest of this entry »

Posted in Dubai | Comments Off on Dubai tourists warned over tough drug stance

Property is gloomy, not booming

Posted by 7starsdubai on January 8, 2009


http://www.kippreport.com/kipp/2009/01/06/4974/

A full page advertisement by property developer Al Barari recently hit papers, and read “What doom & gloom? Standing tall. Steaming ahead. Confident. Well positioned for the next boom!”

We wrote about this, explaining the “doom and gloom” which, thanks to the current financial crisis, does exist in Dubai.

So we were again surprised (and shocked), when we found a mail in our inbox from Dubai’s Damac Properties, announcing that “Property boom is back with a bang!” And why? Because the company claims it is offering waterfront offices in Business Bay at the launch price of 2007.

Property buyers in Dubai are rapidly turning into sellers even as they struggle to find an interested investor. More than 1,000 people have been laid off in the real-estate sector, developers have cancelled projects, and property prices have fallen drastically.

While property ads in the region have fallen – The National newspaper has just one property ad on Tuesday – a developer talking about a “property boom” or a “lack of gloom” in the current scenario does seem jarring.

Rather than trying to pull in new investors, a better idea for developers might be to provide good customer support to the existing ones.

Posted in Dubai | Comments Off on Property is gloomy, not booming

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

Posted by 7starsdubai on January 7, 2009


brochure01afpdynastyzarooni01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Posted in Dubai, Jumeirah Business Centre | Tagged: , , , | Comments Off on Business Partner of Al Fajer Properties – Chairman Dynasty Zarooni arrested in Dubai

Dynasty Zarooni Real Estate Chairman arrested in Dubai

Posted by 7starsdubai on January 7, 2009


brochure02afpdyza021      brochure01afpdynastyzarooni03        brochure02afpdyza031   brochure01afpdynastyzarooni02
DUBAI (Zawya Dow Jones)–Kabir Mulchandani, chairman of Dubai property company

The official confirmed that a case has been filed against Indian businessman Mulchandani in Dubai for an alleged liquor related offense and bouncing a cheque for an undisclosed amount, which is an offense in the United Arab Emirates.

Dynasty Al Zarooni Real Estate
Dynasty Zarooni
UAE | Real Estate
 News | ProfileOfficers

, has been held this week by Dubai police, an official at Dubai’s Public Prosecution told Zawya Dow Jones Tuesday.

 

Jaydeep Anand, Dynasty Zaroonis chief operating officer, was unable to confirm the arrest when called by Zawya Dow Jones.

“I have no information,” he said.

The Public Prosecution official said that Mulchandani has been questioned but was unable to provide further information.

Earlier this year, Dubai’s Real Estate Regulatory Authority cleared Dynasty Zarooni of any wrongdoing after two Indian publications ran reports that some investors had complained that Mulchandani had misled them by showing one property and selling them another.

The developer was created in September 2007 with the merger of the Hilal Al Zarooni Group and Dynasty Enterprises Inc and a net equity of 1.35 billion U.A.E. dirhams ($367.5 million).

-By Majdoline Hatoum and Stefania Bianchi, Dow Jones Newswires; +9714 364 4964; majdoline.hatoum@dowjones.com

Copyright (c) 2007 Dow Jones & Company, Inc.

(END) Dow Jones Newswires

06-01-09 1041GMT

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Posted in Dubai, Jumeirah Business Centre, Kabir Mulchandani | Comments Off on Dynasty Zarooni Real Estate Chairman arrested in Dubai

Comments to: Dubai Villa prices fall 45 %

Posted by 7starsdubai on January 5, 2009


recession in dubai???
Posted by Dinesh on Monday 5 January 2009 at 15:46 UAE time

Won’t be long until you will be able to buy villas at the prices they were being sold at 4 years ago. If recession takes its toll on Dubai then this will happen faster than you can imagine.

Villa Prices
Posted by I love cars, Dubai, UAE on Monday 5 January 2009 at 15:25 UAE time

I dare any of the readers to do a poll between friends and see how many of your friends own real estate in Dubai. It will shock you. We did a poll with friends all of whom make very, very good money including us and only 1 couple of 12 bought in Dubai. Now if only 1 couple out of 12 bought then isn’t that cause for concern when people making large sums of money are refusing to purchase? You’d never see this in the U.S. or Canada as everyone owns their own home or thereabouts. The Dubai Gov’t might need to step in and setup reform or coerce banks into providing lending. However, if banks aren’t’ willing to take the gamble then why would investors? The writing is on the wall and will take a long time to correct…

The market is going down another 40%
Posted by Tajer, Dubai on Monday 5 January 2009 at 14:26 UAE time

Prices on the villas had got to a point that they were unrealistic. Today with properties in matured markets like the UK, US and Australia are multiple times cheaper and the total cost of ownership is much less then what it is in UAE .

Million dollar home in US are gorgus family home and looks and feels like a million dollar home not what has been built here in Dubai that you need to spend another million to update the house to a livable condition . Some can say that they were cheap homes and therefore have a cheap finish.

The prices have to come down to a realastic level comparabile to the world markets till then we are in a bubble and the chances of a long term healthy market recovery is not possible

need value for money
Posted by Maxim, Dubai, UAE on Monday 5 January 2009 at 13:58 UAE time

In Dubai real estate there is no value for money. So called villas in Dubai are constructed with poor quality material. A 4 B/R villa is not worth more than AED850,000. A cowshed in America/European country is constructed with better quality standards than these villas. As long as there is no good quality housing, prices are bound to fall. Only good location, good quality house would fetch better price in future.

read more:

Posted in Dubai | Comments Off on Comments to: Dubai Villa prices fall 45 %

Dubai Villa Prices fall by up to 45% in the last 4 month

Posted by 7starsdubai on January 5, 2009


http://www.arabianbusiness.com/542637-villa-prices-fall-by-up-to-45-amid-real-estate-slump

Villa prices at Jumeirah Park and Jumeirah Islands, Nakheel’s exclusive residential developments in Dubai, have plunged up to 45 percent in the last four months, Arabian Business has learnt.

Brokers across the UAE said speculators were desperately scrambling to off-load property before prices fell further.

Imran Aslam, agent at Dubai-based property broker AAA said completed three to four bedroom villas on Jumeirah Islands were now on the market for as low as six million dirhams, down from 10.5 million dirhams four months ago.

“It’s a big difference now. Investors are quickly reducing prices. They are also finding they have got too many [properties], so they want to sell. At the moment there is no stable price in the market.”

Aslam said off-plan villas at Jumeirah Park, a 350 hectare planned residential community due for completion in the next few months, have fallen in price by 40 percent.

Distressed investors are fleeing Dubai’s once red hot real estate market as the global credit crunch hits demand, sending values tumbling.

Lack of mortgage availability exacerbated by a regional liquidity squeeze is also hampering would be buyers, agents said.

Adriana Kapostikova, broker at Dubai Waterfront Properties said: “It [the market] is going down. This is the problem. There are people putting prices down and down because they want to sell. It’s cheap now.”

Up-market villas on Jumeirah Islands, a smart residential enclave consisting of a series of man-made islands near Emirates Golf Club, have come down in value from 12 million dirhams to nine million dirhams, a reduction of 30 percent, Kapostikova said.

Abu Dhabi-based broker Ocean View said real estate values at Jumeirah Park had slipped 40 to 50 percent in the last few months.

Private developer Nakheel completed Jumeirah Islands in 2006. Villas at Jumeirah Park, which is a family orientated development with a number of open spaces and parks, range from three-five bedroom villas.

Posted in Dubai | Comments Off on Dubai Villa Prices fall by up to 45% in the last 4 month

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

Posted by 7starsdubai on January 5, 2009


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.”

Posted in Dubai, Jumeirah Business Centre, Kabir Mulchandani | Tagged: , , , , , | Comments Off on Dynasty Zarooni Chairman – Criminal Business Partner of Al Fajer Properties Dubai – arrested

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

Posted by 7starsdubai on January 5, 2009


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

Posted in Dubai | Tagged: , | Comments Off on Law No.7/2006 Concerning Land Registration in the Emirate Dubai

Government of Dubai Dubai Lands Department Law No.8

Posted by 7starsdubai on January 4, 2009


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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Dubai developers to be ranked by watchdog

Posted by 7starsdubai on January 4, 2009


http://www.arabianbusiness.com/542513-dubai-developers-to-be-ranked-by-watchdog

Property developers in Dubai will be ranked by financial stability and market experience under a new system to be introduced, it was revealed on Saturday.

The ranking system being introduced by the Real Estate Regulatory Authority (Rera) is an attempt to reduce the number of developers and reinforce investor confidence in a sector badly hit in 2008.

“We’re evaluating all of the developers in Dubai,” said Marwan bin Ghalita, the chief executive of Rera in comments published by UAE daily The National on Saturday.

“All will be graded according to their financial liquidity, their experience in the market, the number of projects and the added value they give to the community. So before people invest in a project, they will see what the rating of the developer is and will be able to base their decision on that.”

The initiative will be followed by a regulation requiring developers registering off-plan projects to fully own the land first.

During Dubai’s explosive property growth in the past six years, the number of developers has risen above 100.

And investor confidence in off-plan projects has been harmed by several cases of developers failing to go ahead with projects or not to delivering on schedules.

Ghalita told the paper the number of developers in the emirate needed to be reduced to a more manageable level.

“There are too many of them,” he said. “We need to make the number smaller so we can control them more and they can serve the market better.”

Last week Rera announced a regulation banning freelance property agents from operating in Dubai.

Any broker who wants to set up business will have to be over the age of 18 and obtain a good-conduct certificate from Dubai Police. Brokers also will have to take a Rera training course

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Dubai Hotels in Price War

Posted by 7starsdubai on January 4, 2009


The National , Jan. 3, 2008

http://www.thenational.ae/article/20090103/BUSINESS/455990770/1040

Dubai hoteliers are waging a price war, with room rates cut by as much as half as they try to lure tourists hit by the global financial crisis.

The recession in Europe, Dubai’s largest tourist source market, has caused a sharp drop in visitor levels, with occupancy rates down 25 per cent on those enjoyed at the same time last year.

“We are entering a price war as most hotels in Dubai are cutting their rates,” said Amine Moukarzel, the senior vice president and managing director of the Dutch-Swiss Golden Tulip group.

Golden Tulip is one of the biggest mid-range hotel chains in the Middle East, with 41 outlets. It operates 11 UAE hotels in Dubai, Abu Dhabi and Sharjah.

“The situation is very dire indeed and I believe that all hotels in Dubai are experiencing much lower rates than last year because people right now are really starting to cut down on travel budgets,” Mr Moukarzel said.

Many hotels in Dubai have seen occupancy rates drop to between 60 per cent and 70 per cent from the 80 per cent and 90 per cent levels in the same period last year, according to Habib Khan, the chief executive of Planet Group, which owns and manages three mid-range hotels in Dubai.

Hilton hotels have slashed their prices by up to 50 per cent on weekend breaks for bookings made before the end of August this year. The offer would be valid in 220 hotels – Hilton, Conrad Hotels and Resorts, The Waldorf-Astoria Collection, Doubletree by Hilton and Hilton Garden Inn – across 45 countries including the Middle East, the company said.

Hilton Dubai Creek, known for its Gordon Ramsay Verre restaurant, is offering rooms at a starting rate of Dh530 (US$144) compared with Dh1,944 last year, while Hilton Al Ain is promoting rates from Dh435, down from Dh870. Even in Ras al Khaimah, weekend rates at the Hilton have dropped to Dh460 from the Dh920 being charged at this time last year.

To address falling occupancy rates, the recently opened Atlantis in Dubai has refused to allow guests to book for less than seven nights during the holiday period.
So far, no official data on tourist numbers have been released by Dubai’s Department of Tourism and Commerce Marketing (DTCM) for the final quarter of last year. A spokesman said the report would be published in the next few days.

With plans to double the number of tourists to 15 million annually by 2015, the DTCM announced a plan last week that aims to boost visitor numbers early this year.
“The DTCM will launch a new marketing campaign aimed at increasing the number of tourists and visitors during the Dubai Shopping Festival [which starts on Jan 10] till mid-February,” said a DTCM spokesman.

The plan includes deeper discounts on room rates, ranging from 40 per cent to 60 per cent, in addition to a 25 per cent discount on the prices of food and beverages. Khalid Ahmed bin Sulayem, the director general of DTCM, said the campaign was part of an effort to sustain tourist attractions throughout the year.

The campaign will use the internet, press and industry promotions to cover the UK, Germany, GCC states, India, China, Japan and Australia.

“It is no surprise hoteliers are expecting a tough year ahead but I think that we can overcome these challenges by offering attractive discounts and deals,” said Eyad Abdul Rahman, the executive director of media relations and acting director of business development at the DTCM. “We have no plans to revise our tourism targets, so to put it simply we will achieve the goals that we have set out.”

abakr@thenational.ae

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RERA sets new Payment RULE starting January 1st, 2009

Posted by 7starsdubai on January 1, 2009


http://www.business24-7.ae/Articles/2008/12/Pages/12312008_e460414bf0cd4372bed20f0362e9d90d.aspx

Starting from January 1, 2009, developers and banks have been ordered to stop taking payments more than 20 per cent of the cost of properties from buyers or investors until construction begins, a Real Estate Regulatory Agency (Rera) official has revealed.

“We have sent out letters to 100 developers – as well as having meetings with them and lending banks and institutions – telling them to take payments from buyers worth only up to 20 per cent of the contract value,” Essa Saeed Ahmed Al Mansoori, Head of the Trust Accounts Section at Rera’s Real Estate Development Trust Account Department, told Emirates Business.”With properties that are already being built, developers who have collected more than 20 per cent of the contract value from buyers will immediately have to stop asking for further payments until they correlate the escrow amounts already collected to construction progress.”Rera has set up an 11-member Real Estate Development Trust Account Department that will supervise and monitor the construction process and ensure the escrow amounts are collected in accordance with the agreed schedule.We have all the figures in our database and are asking developers to stop collecting money from buyers,” said Al Mansoori.

Rera Chief Executive Marwan bin Ghalita said developers could protect their rights by referring disputes to the Property Court where contractual agreements would be enforced.

The message we want to send out to the developers and lending banks is to consider the situation of the investor before they take action,” he said.

“In this time of crisis, everyone should work together and everybody’s rights will be protected.”

Meanwhile, Rera has announced that a revision of Law No 8 is being considered by Dubai Land Department.

“For new sales and purchase agreements the booking amount has been set at a fixed amount rather than the previous rate of five to 10 per cent of the contract value,” said Al Mansoori . “In January, Rera will set up a technical audit team. The new system will enable stricter auditing of the escrow account, the developer and the trustee.”

He added that Rera was introducing regulatory procedures covering Law No 13, which established the Interim Real Estate Register.

A land department spokesman said 100,000 units had already been registered.

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119,843 cases were presented to the emirate’s courts in the first 10 months of the year.

Posted by 7starsdubai on January 1, 2009


http://www.business24-7.ae/articles/2008/12/pages/12292008_391955b8c8864e38a77481c0445215ec.aspx

Foreign experts in judicial and international economic affairs are helping to develop the operations of commercial courts set up in Abu Dhabi earlier this year.

The specialists are drawing up a strategic plan for the coming years that will enable the courts to arbitrate in economic disputes, including those involving the Abu Dhabi stock market.

The source said there were no plans to scrap the courts as the department regarded them as highly important.

Meanwhile, the department’s annual report said yesterday 119,843 cases were presented to the emirate’s courts in the first 10 months of the year.

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