KHOIE Properties, the developer behind La Hoya Bay project in Ras Al Khaimah, has told investors that they can claim refunds within the next 90 days, after which construction will restart, but has given little information on how to apply for the refund.
Media reported angry scenes at the Khoie Properties office in Dubai on Friday, where executives gave brief statements saying the developer was in a position to get financing to restart the stalled project within 90 days.
However, the executives did not give specifics on where the financing would come from, or how investors could get the forms to request refunds.
The statements re-iterated the same claims made by jailed CEO Frank Khoie in a statement on Thursday.
Khoie was imprisoned for three years in June last year after a dhs57 million cheque issued by him bounced.
Ashley Merry, a British investor in La Hoya Bay, told 7DAYS she believed many investors would want a refund, but she was unsure where the money for the refunds would come from.
"Is there any substance to him saying he will be in a position to refund investors?" she asked.
"If he can afford to refund investors, why hasn't he settled his debt and got himself out of jail?"
Khoie's statements are the latest in a saga of claims and litigation over the La Hoya Bay project between Khoie and Ras Al Khaimah Investment Authority (RAKIA), developer of Al Marjan Island where La Hoya Bay is to be situated.
In September last year, the RAK Court appointed RAKIA as "judicial custodian" of Khoie Properties until the completion of La Hoya Bay, after the developer was deemed insolvent.
However, the developer has denied insolvency and Khoie himself has persistently alleged that RAKIA and Rakeen are deliberately trying to wrest control of the project from him, and has filed a lawsuit against them claiming this.
© 7Days 2010
