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Mon 31 Aug 2015 11:42 AM

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Dubai Atlas Jewellery owner reportedly detained over outstanding debts

Numerous banks lodged complaints with Dubai Police over bounced cheques

Dubai Atlas Jewellery owner reportedly detained over outstanding debts
Image for illustrative purpose only (Getty Images)

The owner of Dubai-based Atlas Jewellery and his daughter have been detained by police over bounced cheques, according to a local media report.

Dubai Police reportedly told Khaleej Times the owner of the major jewellery chain was arrested following a number of complaints lodged against the group by banks. The newspaper said the owner’s daughter was also arrested in relation to bounced cheques and is being held at a women’s detention centre in Bur Dubai.

Police have reportedly received five complaints from different banks, lodged at various stations in the Creek area of the city, including Bur Dubai where a complaint was lodged regarding a cheque worth AED34 million ($9.2 million).

According to Khaleej Times, Atlas has defaulted on payments with as many as 20 banks in the UAE and India over debts reaching AED600 million ($163 million).

An official with Bank of Baroda Dubai, speaking on condition of anonymity, told the newspaper: “The group owes Bank of Baroda AED70 million ($19 million). The banks have together formed an informal steering committee and will come to a decision on the jewellery group next week.”

Tawhid Abdullah, chairman of Dubai Gold and Jewellery Group, said it was willing to provide any assistance it could to help find a solution to the problems.

"However, we have not directly heard from Atlas Jewellery or from its creditor banks,” said Abdullah. “Nobody has approached us asking for our intervention. We would like to help, and are happy to do so. But we need to get a clear picture,” he added.

Atlas Jewellery Group, with its headquarters in Dubai, has over 48 stores in the UAE, Kuwait and Saudi Arabia. The group also diversified into the real estate and healthcare sectors in the late 1990s.

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Yacoob Hassan 4 years ago

To depend on loan from bankers especially for Gold, precious stone business may end in risk when the price of Gold is falling at the same time interest in banks are getting accumulating. Since the capital is worth to price of Gold, the situation is always worse

Diverting such loan or funds to other sector may even risk the normal business growth as well

However, the supportive statement from the concerned business group is really consoling.

While banks are refusing loans for healthy and smooth business, we wonder how they are getting involved in giving loans to highly fluctuating business sector!!!

RayCee 4 years ago

Serves the banks right. Most banks act as herds of sheep to flock together to give huge sums of loans to such hyped up big entities, but treat small businesses & SME's as untouchables. How will the businesses grow that make up the back-bone of any economy? The banks will now learn their lessons and I hope they do.

Shanti 4 years ago

Very true... you brought down the real picture of how banks here act. When an aspiring working person, wants to become an entrepreneur / business person and looks for loan, banks will straightaway refuse and established business houses, they keep calling and torturing to take business loan, only at the end to see the default and the owner running away / swindling funds.

The central bank should encourage small time / new business set up rather than big houses without checking their credit rating... which will result in such things only.