08 January 2009
Company chairman hits back at criminal complaints from investors
A businessman accused of misleading investors over property deals has told 7DAYS: "There was no question of wrongdoing."
Kabir Mulchandani, the chairman of property investment consultant Dynasty Zarooni, has been questioned by police over claims that he promised massive returns that never materialised.
Reports yesterday claimed clients said they paid dhs300,000 a month for which Mulchandani promised a return of a million dirhams a month after the first six instalments.
But Mulchandani told 7DAYS that the monthly 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 two and five per cent.
And he insists no returns were ever guaranteed.
"There is not a single document, an 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.
Mulchandani confirmed he had been questioned by Dubai police about the allegations. But he maintains the claims were made by investors who were trying to get out of their commitments to Dynasty Zarooni because of the current economic climate.
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 should not buy what you can't pay for.
"They've done that and now they're desperate, and desperate people do desperate things."
He said those making complaints against him had bounced post-dated cheques given to the company for both the membership fee and for properties they purchased.
"When a cheque bounces we always give somebody time to pay so we did not file police cases against them. Unfortunately, that turned out to be an error because what I should have done is file criminal proceedings against them first," said Mulchandani.
He added that he considered his accusers "misguided".
"It is unfortunate that they have chosen this path to take when they have made so much money," he said.
By Brid-Aine Conway
7Days 2009
Company chairman hits back at criminal complaints from investors
A businessman accused of misleading investors over property deals has told 7DAYS: "There was no question of wrongdoing."
Kabir Mulchandani, the chairman of property investment consultant Dynasty Zarooni, has been questioned by police over claims that he promised massive returns that never materialised.
Reports yesterday claimed clients said they paid dhs300,000 a month for which Mulchandani promised a return of a million dirhams a month after the first six instalments.
But Mulchandani told 7DAYS that the monthly 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 two and five per cent.
And he insists no returns were ever guaranteed.
"There is not a single document, an 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.
Mulchandani confirmed he had been questioned by Dubai police about the allegations. But he maintains the claims were made by investors who were trying to get out of their commitments to Dynasty Zarooni because of the current economic climate.
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 should not buy what you can't pay for.
"They've done that and now they're desperate, and desperate people do desperate things."
He said those making complaints against him had bounced post-dated cheques given to the company for both the membership fee and for properties they purchased.
"When a cheque bounces we always give somebody time to pay so we did not file police cases against them. Unfortunately, that turned out to be an error because what I should have done is file criminal proceedings against them first," said Mulchandani.
He added that he considered his accusers "misguided".
"It is unfortunate that they have chosen this path to take when they have made so much money," he said.
By Brid-Aine Conway
7Days 2009
