Investment firm chief held for suspected fraud
INVESTORS CLAIM HE PEDDLED DH7B PROPERTY TO RAKE IN MILLIONS
Investors claim he peddled Dh7b property mirroring the design of old Islamic eras |
Police have reportedly arrested the managing director of a boutique investment firm in Al Garhoud which peddled a Dh7 billion real estate project in Dubai, mirroring the architecture and design of old Islamic eras.
A comment from police was not readily available, but lawyers handling the case confirmed to Gulf News that the 47-year-old Indian has been taken into custody following complaints of fraud.
His investment firm was behind the ambitious development announced in Dubai with great fanfare earlier this year.
Supposed to sprawl over 20 million square feet, the gated community promised to reflect the traditional lifestyles of three Islamic eras — Ottoman, Mamluk and Ummayad dynasties, which ruled the Muslim world for hundreds of years.
At a press conference held at Burj Al Arab Hotel in January 2018, the firm’s managing director had boasted how residents of the development could relive the great Islamic civilisations of yesteryears as they moved around the community in carts pulled by donkeys and horses in the walled city.
“They took money from our client but failed to deliver. We had no option but to involve authorities,” said Abdullah Nasr, legal representative of Louloulat Al Sharq company, which had tied up with the investment firm for the project estimated to cost between Dh5-7 billion.
Another complainant, N.S., who runs a construction firm, said they have lost Dh2 million. “We gave the investment firm an advance of two million dirhams on the back of tall promises. When we asked them to return our money, they gave us cheques all of which bounced,” N.S. told Gulf News.
Chinese connection
Similarly, Chandrababu Gangadharan, chairman Sree Dhanya Construction in Al Ghusais also claimed to have been duped out of Dh2 million.
“We gave the investment firm Dh2 million upfront. We were told that the money will be used to raise a $200 million loan from a bank in China. Out of this, we were supposed to get Dh50 million which we had to repay the investment firm over five years at an interest of 7 per cent as per our agreement. It sounded a good deal and we fell for it,” Gangadharan, who is currently in India, said in a telephonic interview.
The chairman of the investment firm is also facing investigations in India where he claimed to have injected $100 million in Just Buy Live, an online distribution platform connecting brands with retailers and small and medium enterprises.
“We never got any money. In fact, they have left our company in despair,” said a representative of Just Buy Live.
In January 2018, the accused had boasted about how residents would move around in carts pulled by donkeys and horses in the walled city.