Indian held in Dubai's USD 100 million fraud case
A prominent Indian businessman has been arrested in Dubai following allegations of defrauding investors of over USD 100 million.
A prominent Indian businessman has been arrested in Dubai following allegations by scores of investors that his company defrauded them of over USD 100 million.
Kabir Mulchandani, the chairman of 'Dynasty Zarooni', was arrested last week on allegations of fraud and is helping with inquiries, media repports has said.
At least ten members of an "investment club" which last year promised huge profits from the company's preferential access to real estate deals, have lodged complaints against Mulchandani, his Emirati business partner, Hilal Al Zarooni, their joint venture 'Dynasty Zarooni', and two other employees, the Financial Times said.
Investors say Mulchandani in March received subscription fees of USD 81,697 a month from 12 members. He promised them returns of USD 272,242 a month after six months, or USD 1,633,453 in September.
News of the complaints against the chairman could raise concerns among other investors in Dynasty Zaroonis claimed USD 5.7 billion real estate portfolio. Zarooni is reported to have denied any participation in, or knowledge of, a fraudulent scheme.
"One hundred per cent I deny this, there is nothing illegal whatsoever," he said. According to the report, Mulchandani has been detained but is seeking bail. Lawyers say more than 100 other investors are preparing cases against Dynasty Zarooni over misrepresentation during the sale of its real estate projects.
"This could develop into one of the UAE's largest fraud cases if other individual investors in Dynasty Zarooni come forward," one investor is quoted to have said.
