13 January 2009
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.
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.
© 7Days 2009
