Dubai Public Prosecution has dismissed a charge of fraud brought by investors against Kabir Mulchandani, chairman of Dynasty Zarooni, but ordered a charge against him in the Misdemeanour Court.
Public Prosecution ordered Mulchandani and two other men, one Emirati and one Indian, to be referred to the Misdemeanour Court for the charge of establishing a "double money club" worth dhs17 million.
However, it dismissed allegations of defrauding invest-ors out of dhs400 million.
Mulchandani had set up an 'investor's club' where potential property buyers paid a fee to be given first refusal on new off-plan projects from Dynasty Zar-ooni at pre-launch prices.
Investors alleged that Mulchandani promised returns of a million dirhams a month.
The lawyer for the claim-ants, Salem Al Shaali, told 7DAYS that Mulchandani claimed his investments would make big profits for clients and he took their money, but the promised profits never materialised.
"I will appeal to the Public Prosecution about the fraud dismissal because I need to protect my clients' rights," he said.
However, Issa Bin Haider, Mulchandani's lawyer said his client's businesses were legal and he was providing a service for money. He said there was no evidence against Mulchandani and the effect of the financial crisis on property prices had cau-sed the problems.
"I will present a defence memo to the Misdemeanour Court asking to acquit my client from these charges," he added.
A source from the Public Prosecution said that Mulchandani is currently out on bail awaiting his case's hearing in the Misdemeanour Court.
The court is expected to set a date for the trial soon.
7Days 2010
