Four developers under investigation

Dubai's real estate watchdog probing firms for what appears to be non-delivery of projects.
Four developers under investigation
By Amy Glass
Mon 05 May 2008 11:02 AM

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

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