The owner of Dubai-based gold and jewellery retailer Atlas Group has reportedly been jailed for three years for issuing two bounced cheques worth AED34 million ($9.25 million).
MM Ramachandran, a 73-year-old Indian businessman, is said to have issued two cheques worth AED4 million and AED30 million to a local bank, Gulf News reported.
"Ramachandran will be jailed for three years," said presiding Judge Ahmad Shiha in comments published by the Dubai daily.
Sources close to the case told Gulf News that Ramachandran's lawyers will lodge an immediate appeal to challenge Thursday's ruling.
In August, Dubai police said the Indian national and his daughter had been arrested in cases relating to suspected bounced cheques.
Dubai has in recent years joined the likes of London, New York and Hong Kong as a major gold trading centre thanks to its proximity to the world's largest gold consumer, India, and an aggressive drive to become a regional commodities hub.
This is the second scandal involving Dubai jewellery businesses since the city's rise to prominence as a significant gold trading centre. In March 2010 the Dubai Financial Services Authority sanctioned three brothers behind Damas International over unauthorised withdrawals from the company of 1.94 kg of gold and cash worth about AED365 million.For all the latest retail 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.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.