Four developers under investigation

By Amy Glass
  • Monday, 5 May 2008 11:02 AM
  • Share via facebook
  • Tweet this
  • Bookmark and Share

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 investigationMeanwhile, 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 investorsFourth 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 projectReason for axing Palm Springs questioned

Palm Springs investors face millions in losses

Damac threatened with lawsuit after project axed

Related:
Companies

Deyaar Development Company

DAMAC Properties

Real Estate Regulatory Authority

Market Performance

Deyaar Development Company
0.295
-0.0050 -1.67 (%)
Enlarge graph

Also in Real Estate

Dubai broker first to publish ratings for agents

Dubai’s Princess Tower becomes world’s tallest residential building

Also in UAE

French bakery to enter new GCC markets in 2012-13

Mandarin Oriental eyes MidEast expansion plan

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

Posted by: Jiwaz Wednesday, 11 June 2008 10:44 PM[UAE] - England

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.

Reply to this comment.

Posted by: Chinkiz Khan Tuesday, 6 May 2008 9:37 PM[UAE] - Kyrgyzstan

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.

Reply to this comment.

Posted by: Anbar Badshah Tuesday, 6 May 2008 11:32 AM[UAE] - Pakistan

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.

Reply to this comment.

Can't read the image? Click it to get a new one.

All comments are subject to approval before appearingTerms and conditions

Further reading

Get E-Mail Alerts
Get E-Mail Alerts
Get E-Mail Alerts
Get E-Mail Alerts
Features & Analysis
'Cruise with Nakheel' is offering an inside glimps of ongoing construction on Palm Jumeirah

Palm Jumeirah: Frond N project

New $80m project keeps development moving on Nakheel's iconic...

4

Real estate in Ras Al Khaimah

The $1.9bn Al Hamra Village is at the front line of Ras Al Khaimah...

4
organ Stanley, dubbed 2012 'The Year of the Landlord'

Rise in rental demand lifts US housing sector

With unemployment and home foreclosures rising, many Americans...

Most Popular
Most Discussed
Read all user comments »
  • 48
    Brits must respect UAE culture more - diplomat

    the majority of expats (as most people here argue that its a majority painting an entire nation the villain)....why are the filipinos and indians not the... more

    Sunday, 20 May 2012 9:17 AM - Arthur
  • 27
    Disputed Gulf islands belong to UAE - poll

    It is the Arabian Gulf because firstly Persia hasn't existed since 1935 and, therefore, does not appear on modern maps. So, by saying Persian Gulf we are... more

    Sunday, 20 May 2012 7:40 PM - Juma Said Juma
  • 23
    Nakheel targets 'young and trendy' for Palm project

    This is not the right time to start launching studios, the economic situation in Europe is getting worse daily and is likely to create big ripples in UAE... more

    Monday, 21 May 2012 2:15 PM - Red Snappa
  • 23
    Saudi Arabia bans use of Western calendar

    Other than the usual ridiculousness, this is what caught my eye.

    "All ministries and private agencies should use Hijri dates (the Islamic Calendar... more

    Tuesday, 22 May 2012 6:16 PM - eh.
  • 19
    Iran eyes Google legal action over Gulf naming

    Instead of clinging to anything that reminisces you of your obliterated past, why don't you spend sometime fixing your disgraceful and humiliating present... more

    Tuesday, 22 May 2012 9:30 PM - Fahd
Read all user comments »
Read all user comments »