06 September 2011

A firm which says the developer did not reveal a site it earmarked for a hotel was already home to a mosque takes development giants to court

Palm Jumeirah developer Nakheel is facing a Dhs200 million lawsuit from a firm which says the developer did not reveal a site it earmarked for a hotel was already home to a mosque.

Sharjah-based engineering firm Greenfield Trading says Nakheel failed to tell the company about the mosque before it purchased land in the Dubai Waterfront development in 2008.

The firm is now seeking compensation, its lawyer Jonathon Davidson, managing partner of law firm Davidson & Co, confirmed to 7DAYS yesterday.

The delayed Dubai Waterfront development was billed as the world's largest shorefront development.

Nakheel yesterday told 7DAYS it does not comment on legal proceedings.

Greenfield alleges that it was only after it had purchased and paid for the plot that Nakheel informed it of the existence of a mosque within its boundaries, claiming it had many opportunities to do so prior to the sale.

According to Davidson the existence of a mosque makes "the building of a leisure resort an impossibility" and, having "exhausted all avenues", his client has been compelled to contact the tribunal.

© 7Days 2011