Case against founder Arif Naqvi is expected to be dropped after the scheduled court hearing on Sunday
A $300 million bounced cheque case against Arif Naqvi, the founder of troubled Dubai-based private equity group Abraaj, has been further adjourned to July 15 amid settlement negotiations.
Claimant Hamid Jafar, founder of Sharjah-based Crescent Group and shareholder in Abraaj, has agreed to an out-of-court settlement after last minute discussions last night ahead of today’s court session, sources close to case issue confirmed.
Arabian Business understands that the case will likely be dropped after the court hearing on Sunday.
Naqvi would face up to three years in prison for issuing the three cheques without having sufficient funds in the bank.
The founder of the Dubai-based buyout firm Abraaj Group is currently under investigation for the misuse of investor funds. The firm had nearly $14 billion of assets under management before the allegations led it to undergo a court-supervised restructuring in June in the Cayman Islands, where it registered.
Four key investors in a $1 billion healthcare fund managed by Abraaj, including Bill and Melinda Gates and a World Bank affiliate, have demanded an inquiry into allegations that money from the fund had been misrepresented.
That in turn triggered investor demands for their funds to be returned. Abraaj had the funds to repay secured investors but could not repay unsecured investors.
Financier Naqvi, 57, is currently outside the UAE after the public prosecutor issued a warrant for his arrest.
So far, the company has denied any wrongdoing.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.