Four developers under investigation

UNDER INVESTIGATION: Four developers are the subject of an

Four property companies are being investigated by Dubai’s real estate watchdog over what appears to be the non-delivery of projects, the regulator revealed on Sunday.

Speaking at a Dubai Property Group meeting, Real Estate Regulatory Agency (Rera) CEO Marwan bin Ghalita said four firms were currently being subjected to an "internal audit of transactions”, UAE daily Emirates Business 24/7 reported on Monday.

“We cannot let people promise and not deliver in Dubai”, the newspaper quoted bin Ghalita as saying.

Bin Ghalita declined to name the developers under investigation or give further details.

The authority was seeking a transparent relationship between parties and rules and regulations would be “strictly implemented”, bin Ghalita said.

Rera was also addressing a range of other issues, including developers making misleading claims or charging percentage transfer fees when they were only entitled to claim administration fees, the newspaper said.

The announcement is the latest blow to the emirate’s real estate market, which is reeling from recent controversies surrounding high-profile developers Deyaar and Damac Properties.

Deyaar is being investigated for alleged financial irregularities, with four people detained so far by Dubai Public Prosecution, including former Deyaar CEO Zack Shanin.

RELATED: Deyaar CEO detained, faces investigation

Meanwhile, Damac caused an international investor storm in April after cancelling its Palm Springs project on the Palm Jebel Ali five years after launch. Infuriated investors were threatening legal action until Damac reversed its decision.

RELATED: Damac will continue Palm Springs project, says chairman

It is not known whether either Deyaar or Damac are among the four companies under investigaiton.

Other related Deyaar stories:

Deyaar seeks to reassure investors

Fourth arrest confirmed in Deyaar probe

Third arrest in Deyaar probe

Deyaar scandal escalates with second arrest

Other related Damac stories:

Damac u-turn on Palm Springs project

Reason for axing Palm Springs questioned

Palm Springs investors face millions in losses

Damac threatened with lawsuit after project axed

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READERS' COMMENTS

Saudi Development
Posted by Jiwaz, London, England on Wednesday 11 June 2008 at 22:44 UAE time

Chinkiz Khan can you email me on the following address : seesaw20@yahoo.co.uk.

Who was the Saudi developer who sold on his development? I've got a bad feeling I've invested with this developer and want to know more.

I think this Saudi developer is one of the four that RERA is investigating in Dubai today.

Fraud in real estate development project
Posted by Chinkiz Khan, Bishkek, Kyrgyzstan on Tuesday 6 May 2008 at 21:37 UAE time

I know of a Saudi Developer who took the investors money for 3 years and when he realised that his tower could be sold as is and bring more than three fold
the amount he received from sale. He claimed that he could not finish it and offered the investors their money back and sold the project not caring that some of those investors were considered partners in the project by the fact that they purchased and paid for some of the unfinished units.

All detailed documents proving the developer fraud are available on request if the Dubai authority are serious about investigating this fraudulent company.

Non-promising Developers and Brokers
Posted by Anbar Badshah, Islamabad, Pakistan on Tuesday 6 May 2008 at 11:32 UAE time


I am sorry to mention that a sense of insecurity and apprehention is being developed among investors and those who are interested in buying property in UAE due to some developers and brokers who do not fulfill their comitments like providing the agreement/contract of sale to the clients.This has resulted in cancellation of the apartment at a stage when the price of that property has gone up or the Developer does not open his escrow account.I suggest strict action shoul be taken against such culprits to make the investment safe and attractive for the people.

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