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Archive for the ‘Dynasty Zarooni’ Category

Update Fraud Case Dynasty Zarooni – Ebony Ivory Towers Al Fajer Properties

Posted by 7starsdubai on August 22, 2010

source Emirates Business 247

The Dubai Court of Appeal heard on
Thursday two cases related to Dynasty Zarooni in which the company, its owners and executive are accused of defrauding property investors of a total of Dh1.2 billion.

In the first case, the court, which was supposed to give a verdict regarding a request made by 36 investors for instating defrauding accusation, adjourned the case to September 23 for verdict as one of the three accused failed to attend the hearing. In 2009, the plaintiffs had filed complaints claiming that Dynasty Zarooni, the companys partner, CEO and managing director, Kabir Mulchandani, and its British executive, RG, had sold investors plots of land that did not exist.

The case was dismissed by the prosecution after reviewing a report handed in by a property market expert assigned by the accused.

The plaintiffs challenged the decision considering that flawed investigations were conducted.

Al Shaali and Company, representing the plaintiff, submitted in an earlier hearing his defence saying the prosecution combined non-related complaints filed to police against Dynasty Zarooni into one case and failed to investigate the property fraud.

In the second case, the 36 local and overseas investors appealed the acquittal sentence awarded in the favour of Dynasty Zarouni, is Emirati partner Hilal Zarooni ,CEO and managing director and executive on May 30.

The subject of this case was that the company and its officials have set up a bogus investment portfolio and promised them hefty returns and defrauded investors of Dh893 million.

They complained that KM received subscription fees of Dh300,000 a month from 12 members of the so-called “investment club” with a promise of hefty monthly returns six months after investing their money in real estate projects, which they claimed they did not receive.

They also claimed that there were no escrow accounts for projects they had invested in.

Besides, they complained that the accused made announcements regarding projects( Jumeirah Business Centre 6,7,8,9 or Ebony and Ivory Towers) contrary to reality. Some projects claimed to be in construction proved to be sandy lands.

The sentence of the Court of First Instance was based on a report presented to the court by the defence lawyer proving that investors had received more than Dh232m in profits.

Posted in Al Fajer Properties, Al Shaali Advocates, Dubai Justice, Dynasty Zarooni, Jumeirah Business Centre, Kabir Mulchandani, Sheikh Maktoum Hasher Maktoum Juma Al Maktoum-2 | Tagged: , , , , , | Comments Off on Update Fraud Case Dynasty Zarooni – Ebony Ivory Towers Al Fajer Properties

Dubai Investors appeal in property Fraud Case

Posted by 7starsdubai on July 20, 2010

source The National

DUBAI // Plaintiffs who claim they have been defrauded of more than Dh1.2 billion by a property developer have asked that the dismissed charges against the company be reinstated.

The 36 investors want the Dubai Court of Appeals to reopen the case against Dynasty Zarooni that public prosecutors had declared groundless. They claim that flawed investigations were conducted by prosecutors.

Two cases were filed by the plaintiffs last year against the company, its Indian chief executive Kabir Mulchandani, his Emirati business partner and managing director Hilal Zarooni  and the British executive R G.

The first case, which was referred to court, charged the men with setting up a bogus investment portfolio and defrauding investors of Dh893 million. The Dubai Court of Misdemeanours acquitted them on all charges on May 30.

The court reached its verdict after the defence presented documents that proved contractual agreements between the investors and Dynasty Zarooni. The documents showed that the investors had received more than Dh232 million in profits from their investments.

The second case alleged that Kabir Mulchandani and his co-defendants committed a property fraud by selling investors plots of land that did not exist. Prosecutors dismissed the case after reviewing a report by a property market expert they assigned to investigate the allegations.

Lawyers of the law firm representing the plaintiffs, Al Sha’ali & Co, told the appeals court yesterday that the second case had been dismissed illegally.

They claimed that prosecutors had combined unrelated police complaints filed against Dynasty Zarooni into one case and had failed to investigate the property fraud properly. The lawyers held that the escrow accounts registered to the company were not investigated and did not exist. They claimed contractors( Al Fajer Properties) presented by Dynasty Zarooni as the builders of their Ebony and Ivory towers testified under oath that they had not taken part in any construction projects with the company.

“Three contracting companies have testified to prosecutors that they only signed agreements with Dynasty Zarooni but have not conducted any business with them,” said lawyer Mohammed Safwat.

A separate case has been filed against the property expert who conducted the initial investigation, according to defence documents presented in court.

The documents allege that the expert had not conducted his evaluation properly and was legally bound to be prosecuted.

The court was also asked to present a different court-appointed expert to review the case.

The court will hear from the defence on July 22.

Posted in Al Fajer Properties, Al Shaali Advocates, Dubai Legal - Real Estate Lawsuits, Dynasty Zarooni, Fraud, Hilal Zarooni, Immobilienbetrug Dubai, Jumeirah Business Centre, Kabir Mulchandani, Sheikh Maktoum Hasher Maktoum Juma Al Maktoum-2 | Tagged: , , , , , , | Comments Off on Dubai Investors appeal in property Fraud Case

Dynasty Zarooni Executives charged with defrauding 25 Million

Posted by 7starsdubai on February 18, 2010

original published GulfNews

Gulf News obtained a copy of the arraignment sheet, in which K.M. was charged with offering the businessmen to multiply their money through a bogus investment portfolio. Records said the Indian told the businessmen to provide a monthly payment of Dh300,000 to be invested in real estate projects offering a monthly revenue of Dh1 million starting from the seventh month. KM allegedly got the claimants trust the feasibility of the portfolio by advertising in newspapers and the internet.

The Public Prosecution also charged M.H.Z. and R.Q. with aiding and abetting K.M. by confirming his claims, the act which allegedly resulted in cheating the claimants.

continue reading…..

Real estate fraud

Gulf News also learnt that prosecutors dismissed the charges of real estate fraud, worth hundreds of millions of dirhams, against the suspects for lack of crime.

Al Shaali appealed the dismissal of the real estate fraud charge.

An appeals judge is looking into this plea.

“The jury is only responsible for prosecuting the suspects on the charges of swindling and establishing a bogus investment portfolio … I will not accept any real estate fraud case or complaint,” concluded Presiding Judge Abdul Majid, who adjourned the case until March 10.

According to the charges sheet, K.M. told prosecutors that he bought the properties, which the businessmen described as bogus and non-existent, from developers and he was authorised to sell them. He presented contracts and documents to prove that he was authorised to do so.

Dynasty Zarouni’s chairman claimed in his statement to prosecutors: “Due to the global financial crisis, some of the businessmen’s cheques bounced and when he presented the bad cheques to the police, they complained against him.”

Posted in Al Fajer Properties, Dubai, Dubai law, Dubai Property Investors, Dubai Real Estate Scandal, Dynasty Zarooni, Fraud Dubai, Lawsuit Dubai | Tagged: , , , | Comments Off on Dynasty Zarooni Executives charged with defrauding 25 Million

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

Posted by 7starsdubai on November 16, 2009

original source dailymail uk

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Posted in Dubai, Dynasty Zarooni | Tagged: , | Comments Off on Dynasty Zarooni Dubai back in the Headlines – Another criminal complaint ?

Al Fajer Properties Dubai Scandal media blackout

Posted by 7starsdubai on June 20, 2009

May 28. 2009
source Independent by Heerkani Chohan and PropertyWeek

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

neighbouring hotel to be told of the escalating situation. But

when reports began to surface on news websites, news

agencies received phonecalls from senior Dubai

government figures ordering them to be pulled.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Posted in Al Fajer Properties, Dubai, Dubai Property dispute, Dynasty Zarooni, Fraud Dubai, Jumeirah Business Centre, Sheikh Maktoum Al Maktoum, Sheikh Maktoum Hasher Maktoum Juma Al Maktoum-2 | Tagged: , , , , | Comments Off on Al Fajer Properties Dubai Scandal media blackout

Forbes: ‘Madoff Of The Mideast’ Denies Charges

Posted by 7starsdubai on January 15, 2009

original published Forbes 14-01-2009


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 Damac Haz Tower scandal – Business Bay 

Posted by 7starsdubai on May 16, 2008

Confusion over the Haz Tower project in Business Bay may be nearing an end as both Damac and Hilal Al Zarooni will have to sign an agreement by next week, according to Land Department officials, Gulf News reported.

Emad Eldin Farouq, legal counsel for Dubai Land department, said, “There is a settlement agreement that both parties have to sign. They have no choice.”

The signing has so far been delayed due to a possible second option.

The Haz towers project was launched July 8, 2007, after Damac bought it from Dubai Properties before selling it on to Hilal Al Zarooni. The cause for the delay is unclear but Eldin Farouq says it is due to the reservation agreement. “Damac blames Zarooni for breaking the reservation agreement. Zarooni was meant to sell the building after approval.”

However, Damac had received no authority for the floor plans or marketing of Haz Tower, according to official documents received by Gulf News. “Damac didn’t have approval from Zoning Authority for the floor plan and elevations for Plot BB.B.01.040 [Haz tower plot].

“Damac has not taken any approval for marketing any tower on the above plot. Damac, owner of plot BB.B.01.040, has not got any approval to start selling the tower or units in the plot which need bank guarantee first to be provided to Dubai Properties.”
Last week, a Damac employee said that the Haz towers project is “on hold, according to a statement by the chairman”.
However, Niall McLoughlin, senior vice-president of corporate communications at Damac, denied this. “Haz towers is going ahead. It would be inappropriate for me to further comment on Haz towers. As you know, it is sub-judice,” McLoughlin said in an email to Gulf News. Another Damac employee said any queries should be directed to Hilal Al Zarooni.
Investors are becoming increasingly frustrated as there appears to be no reason why the project shouldn’t go ahead.

Hilal Al Zarooni told Gulf News, “We’re waiting for the Land department to give their answer. They said it would be next week.”

However, investors are losing confidence in the Land Department as they have now had the complaint for over six months.

Eldin Farouq said yesterday that “the chapter will be closed next week.”

gulfnews – Haz Tower impasse set to end as Damac and Al Zarooni near pact

Posted in Damac Dubai, Dubai, Dynasty Zarooni, Hilal Zarooni, Vereinigte Arabische Emirate | Tagged: , , , | 1 Comment »

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