By Neil Halligan
Recent auction in Dubai saw more than 600 cars sold for $1.3m as grace period to reclaim vehicles is halved
Dubai has halved the amount of time vehicle owners will have to pay fines and penalties due for their impounded property.
Thousands of vehicles are believed to be held in Dubai at any given time, which were seized for a variety of reasons including abandonment, road traffic offences like speeding, reckless driving and jumping signals, maximising black points, not renewing registration and accumulating traffic fines.
Sheikh Mohammed, Ruler of Dubai, has enacted a new law that will seek to reduce the amount of vehicles impounded in the emirate and help with the eventual sell-on price if it goes to auction.
Prior to the new law, impounded vehicles could be auctioned after six months, but the new law will see that period cut to three months.
After that initial 90-day period, the vehicle owner will be given a further 30 days to pay the fines, fees and penalties owed, before it is auctioned.
If the vehicle is sold, the owner will then have three years to claim the remainder of the funds after the deduction of fines, fees and penalties. Should the owner fail to claim the money, it will be given to Dubai government.
The most recent auction of vehicles held last month saw 634 cars auctioned for a total of $1.3 million (AED4,747,000). A total of 456 cars are due to be sold at the next auction on September 11.
The law will put Dubai Police as the central entity responsible for disposing of impounded vehicles in co-ordination and co-operation with other government competent authorities.
Dubai Police Commander-in-Chief, Major General Khamis Mattar Al Muzaina, will set up a committee on disposition of the impounded vehicles with representatives from Dubai Police, Dubai Municipality, RTA, Dubai Public Prosecution and other government entities concerned as members.
The committee may, in co-ordination with the public prosecution, sell vehicles seized for being involved in traffic and criminal incidents three months after the closing of the traffic incident file or a court judgment.
Al Muzaina welcomed the law, saying Dubai Police was always keen to restore rights to their owners and preserve the value of the vehicles as impoundment of vehicles for a long time will decrease their value.
“The new law will contribute to reducing the number of seized vehicles at impoundment lots and speed up procedures for the release of vehicles,” he said.