Skip navigation

Tag Archives: watchdog

by Robert to 7StarsDubai

Until recently I worked in the ‘legal’ department of a major property developer in Dubai. These investors are 100% correct. The unscrupulous practices being carried out by Developers in Dubai in order to defraud investors of the money they’ve handed over in good faith is quite incredible.

fraudgold1

It’s a massive scandal just waiting to be revealed. I just hope these investors are sucessful in their quest to reveal the extent of the scandal. We are talking about billions of dollars of investors money, not millions.

These developers have taken the money from investors, spent it and now cancelled the projects to which the money relates. The crux of the problem is the companies won’t now refund investors their money back as they simply don’t have this money anymore. They’re broke. If they were in an western country we’d say they were Insolvent or Bankrupt. They simply shouldn’t still be trading.

They can’t now give the investors the money back and they’ve spent it (or hidden it away in accounts in far off places). All these developers were relying upon is the ‘Pyramid Scheme’ they’ve been operating wouldn’t come to an end. Sadly the credit crunch arrived and their income gravy train has come to a sudden and abrupt halt. Now blind panic has set in amongst these developers and investors quite rightly ask for their money back in relation to the numerous cancelled projects. The scandal is that the developers are doing every trick in their big sordid book of malpractices in order to avoid having to refund such money, for the reasons I’ve said.

The Dubai Government and the so called ‘Real Estate Regulation Authority (RERA)’ are doing next to nothing to stop these sharks. They shouldn’t be surprised therefore that the pack of cards they’ve tried to build in Dubai over the last few years is now going to come tumbling down around their sorry, sordid ears. You reap what you sow.

EXAMPLE 1:

Everybody,

Be advised, the DL project, nor the units have been registered with the land department. in violation of the law. everybody go to the land department’s registration office ASAP and register your unit in your name. this prevents Schon from selling your apartment and canceling your contract. then go file your case in court ASAP.

DO IT NOW

Escrow account is iffy too. go to the bank and request for your account information as well.

EXAMPLE 2:

I am an ex member of staff from Schon who is owed not an unsubstanial amount of money. Ex employees are not being paid what they are owed. There are several pending civil court cases against this company, who have clearly flaunted the employment and visa rules of this country. One of these cases is taking place this week. By my estimation money owed is certainly well over 1m dirham.

If i were an investor i would not be paying any more money to this compnay until there delivered . they are taking but not giving in any shape or form.

Advertisements

As far as we remeber the Niki Lauda “Twin” Towers should be a project of ACI / Define and now, afters months of waiting, promisses etc. etc. the constructionsite looks like this:

nl-towers

Amazing how the works comes to an ‘end’.