1.26.2009

Dubai Dynasty Zarooni Fraud Allegations Widen,Bail At AED400M

By Stefania Bianchi

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Dubai's public prosecution has raised the bail to 400 million U.A.E. dirhams ($108 million) for Dynasty Zarooni's Chairman Kabir Mulchandani, who is being held by police on fraud allegations, as more aggrieved investors lodge complaints, officials said.

Mulchandani, whose mobile phone was turned off when called by Zawya Dow Jones Thursday, has previously denied any wrongdoing.

An official at the public prosecution told Zawya Dow Jones that Mulchandani is being held on allegations of "fraud and embezzlement" and that he would have to pay the full bail amount in order to be released.

According to lawyers at Al Shaali & Co., one of a number of Dubai-based law firms acting on behalf of the investors pursuing Mulchandani, the cases against the Indian businessman and Dynasty Zarooni involves projects in Dubai and Abu Dhabi worth more than AED5 billion.

"We're currently handling about AED500 million worth of cases," Said Al Akkad from Al Shaali & Co. said Thursday.

The law firm says the final value of cases against Dynasty Zarooni could rise much higher as other investors involved in Dynasty Zarooni's apparent AED21 billion real estate portfolio come forward.

"There are a lot more investors out there who want to file complaints against Dynasty Zarooni. The whole process takes a long time," said Al Akkad.

Mulchandani was arrested by police in early January and has since been referred to the public prosecution. Mulchandani's bail was set at AED76 million when he was first arrested.

Hilal Al Zarooni, Mulchandani's local partner in Dubai, referred Zawya Dow Jones to his lawyers Global Advocates & Legal Consultants when called. Global, who are also representing Mulchandani and the company Dynasty Zarooni, declined to comment on the case.

COMPLAINTS

Investors at six of Dynasty Zarooni's developments worth approximately AED6.35 billion have so far lodged complaints with the police, according to Al Shaali & Co.

The complaints so far refer to property at the company's Ebony & Ivory, Berlin Tower, K Hotel, Panoramic Heights, Sheffield Classique and Al Quorashi Tower developments. The cases include the taking of deposits and installment payments without depositing the money into an escrow account, the issuing of contracts worth just AED1 after the full value of the property has been paid and the misrepresentation of property during the sale.

Some investors at the Ebony and Ivory project in Dubai's Jumeirah Lake Towers district have also lodged a complaint with the police against Dynasty Zarooni for allegedly misleading them about the progress made on the building's construction. Prominent advertising campaigns in Dubai showed pictures of the Ebony and Ivory real estate project under construction 24 hours a day, but a visit to the site by Zawya Dow Jones revealed that no work was underway.

In an advertising campaign published in local media last year the company said that as a company it had earned AED20 billion in revenue, as well as AED6 billion for its investors.

Lawyers say Mulchandani is also being investigated for allegations that he conned a small group of wealthy investors into pledging large sums of money with the promise of a hefty monthly return.

Investors interviewed by Zawya Dow Jones say Mulchandani received subscription fees of AED300,000 a month from 12 members of the so-called "investment club". Mulchandani promised a return of a million dirhams a month after six months after investing their money in Dubai real estate projects.

The investors say Mulchandani has so far failed to deliver any returns, or their initial capital.

By Stefania Bianchi, Dow Jones Newswires; +971 4 3644967; stefania.bianchi@dowjones.com

(Majdoline Hatoum in Dubai contributed to this article.)

Copyright (c) 2009 Dow Jones & Co.

1.18.2009

Kabir Mulchandani finally arrested! He should pay up for our losses!

MUMBAI: Businessman Kabir Mulchandani who in the late '90s revolutionised consumer electronics marketing
with his innovative ideas has been
arrested in Dubai in connection with a multi-crore real estate fraud.

A senior official who is part of the investigation told TOI over the phone that Mulchandani was in jail. "I am not supposed to reveal the details. I can only confirm that Mulchandani is in jail,'' he said. Kabir's mother was not reachable on her cell phone.

Scores of investors have been allegedly defrauded of over $ 100 million by Mulchandani, chairman of `Dynasty Zarooni'. At least 10 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.

Investors say Mulchandani in March received subscription fees of $ 81,697 (Rs 40 lakh) a month from 12 members. He promised them returns of $ 272,242 (Rs 1.3 crore) a month after six months, or $ 1,633,453 (Rs 8 crore) in September. 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.

A Dubai-based businessman Atul who had invested 3.5 million dirhams (Rs 4.6 crore) for commercial premises in Jume Riah Lake Towers developed by Dynasty Zarooni told TOI from Dubai that he had lodged a complaint after he found that no construction happened eight months after he made the payment. "I made the payment in last April and subsequently we were told by Mulchandani that construction to the sixth level was complete. In December, I visited the site and saw nothing but sand. He has played a fraud on me,'' he said.

In Mumbai, the income tax department is looking out for Mulchandani for the Rs 10 crore that he and his family owes them, Rs 6 crore of which is personally owed by Mulchandani for the assessment year beginning '95-'96. Mulchandani's two companies, Baron International and Baron Electronics, owe the government nearly Rs 60 crore and Rs Rs 37 crore respectively.

10.05.2008

Dynasty Zarooni Finally Making A Move!

Read more:

http://dubai7stars.blogspot.com/2008/09/statement-from-dynasty-zarooni-dubai.html

9.28.2008

Dynasty Zarooni Disclaimer

The Dynasty Zarooni disclaimer when read closely gives an insight about the company's stance on the issues of handing over dubious contracts and/or ascertaining that legally there are no slacks that they might have to cater to legally.

In a way their disclaimer is well placed according to their fraudulent stand on various property issues.

Please visit the below mentioned sites to enjoy the disclaimer at the bottom of the page:

http://dynastyzarooni.com

http://dynasty.ae

Dynasty Zarooni- Over achievement is our business( I wonder what that means now!)

9.21.2008

INDIAN ARTICLE EXPLAINS KABIR’S TELE-GAME!SIMILAR PATTERNS!

EXCERPTS:

The increasing number of bounced cheques did not go unnoticed by the Mumbai Police. After receiving a number of complaints, they decided to probe further, the case is now being investigated by the Economic Offences Wing, EOW. The EOW has been on the trail of Kabir and Shagun Mulchandani, the owners of Baron International for some time now. Complaints of bounced cheques from a number of consumers prompted the department to investigate the matter.

PLEASE READ COMPLETE ARTICLE AT INDIAN NEWS SITE:

http://www.moneycontrol.com/mccode/news/article/news_article.php?autono=171148

INVESTORS PLEASE GO TO RERA! DO NOT MAKE ANY PAYMENT TO DYNASTY ZAROONI UNLESS CONFIRMING WITH RERA!

9.19.2008

This is a season of discontent for Dynasty Zarooni

Dynasty Zarooni shot back into the news this week with their delayed license for property development in Central Asia. It was reported that Dynasty has some internal problems rising within their own quarters. One of the owners Kabir Mulchandani was involved in high stake corruption in India. He disappeared for the last few years and has now emerged in Dubai with ambitious plans to do some serious speculation in the dubai market.
There are alot of discrepencies in DZ facts and figures and the Industry leaders believe that Dynasty Zarooni Leadership needs more time and maturity to handle their operations and marketing strategies.
This is an educated economy and trying to fool it with school boy pranks wont work like they worked in India.
And so, this shall be a season of discontent for Dynasty Zarooni

8.21.2008

The Dynasty Zarooni Lies

I recently booked an office with Dynasty Zarouni in the highly advertised Ebony Tower.

I have been baffled ever since I bought it because my office space as per my contract is 14,664 sq ft and

I came across a shocking document of MoU signed between DZ and Al Fajer Properties along with the spreadsheet of sales and floor plans which clearly states the floor size to be 11,300 sq ft.

This difference roughly amounts to be 30% and is an indigestible difference.

Transparent calculations have shown that DZ has already or in some cases is currently receiving premiums from the contract.

The part that sends a shiver down my spine is that DZ does not have an escrow account

With the kind of scams going around these days, I have a series of questions starting….

What happens if Al Fajer is telling the truth about the floor space and DZ isn’t
How do we get re imbursed… blah blah… especially if there is no escrow
Who is Hilal Zarouni and Kabir Mulchandani
Why is Gulf News mis representing the facts. Isnt it a very credible news source?
What is the procedure for taking legal action!

Alot of things don’t make sense here and I hope I can find some answers

There is a big “IF” attached to my presumably new office set up i.e if DZ is not a total hoax

In one case, I m losing quite alot and in the second one I stand to lose everything.

Confusion!

चेक थिस आउट... द्य्नास्टी ज़रूनी


Dynasty Zarooni

I have booked with Dynasty Zarooni for office space in Ebony & Ivory. I was told that construction is in final stages. The representative showed me newspaper clippings of the construction sites and I was happy to have found a very good deal for office space. The deal is/was very good until I started following up on it. Naturally I have my investment with them.

I wanted to see the sites and upon enquiry, I was told two different stories and the agent said I should get in touch with him next week. This was a few weeks ago. Since then I have been chasing Dynasty representatives but to no avail.

I contacted a private agent to find out all that there is in it. Now here’s the horrific part:

The pictures Dynasty SHOWED in the newspapers are NOT the pictures of Ebony & Ivory (Plots G3, H3 & H1). I am shocked after discovering the misrepresentation of Dynasty Zarooni in showing these images that I am pasting OF THE ACTUAL PLOTS WHERE EBONY & IVORY ARE SUPPOSED TO BE BUILT.

My efficient agent went to give me the details of the pictures published in various newspapers and gave the detail of the plots which Dynasty took pictures of for the newspaper ads. The advertised pictures are also shown above

The plots which were advertised in the newspapers are G2, & W1 (JBC 1 & JBC 5) which has a main contractor Al Ahmadiah(Not them) on board for the past 17 months and they are still on first floor!!!!!

Actual images of Ebony Ivory towers as situated on plots G3, H3, & H1 here clearly show that the foundation works will finish in 5 months earliest 7 only then they will have a main contractor on board which means another 7 months from the time the main contractor to come to site for the construction to reach the level they are advertising. In total about 12-14 months behind the advertised images!!!!!! That too if they plan on not folding or pulling something else off

8.12.2008

DYNASTY ZAROONI FRAUD- SELLING EBONY & IVORY TOWERS WITH FALSE CONTRACTS!

I recently booked an office with Dynasty Zarouni in the highly advertised Ebony Tower.

I have been baffled ever since I bought it because my office space as per my contract is 14,664 sq ft and

I came across a shocking document of MoU signed between DZ and Al Fajer Properties along with the spreadsheet of sales and floor plans which clearly states the floor size to be 11,300 sq ft.

This difference roughly amounts to be 30% and is an indigestible difference.

Transparent calculations have shown that DZ has already or in some cases is currently receiving premiums from the contract.

The part that sends a shiver down my spine is that DZ does not have an escrow account

With the kind of scams going around these days, I have a series of questions starting....

What happens if Al Fajer is telling the truth about the floor space and DZ isn’t
How do we get re imbursed... blah blah... especially if there is no escrow
Who is Hilal Zarouni and Kabir Mulchandani
Why is Gulf News mis representing the facts. Isnt it a very credible news source?
What is the procedure for taking legal action!


Alot of things don’t make sense here and I hope I can find some answers

There is a big “IF” attached to my presumably new office set up i.e if DZ is not a total hoax

In one case, I m losing quite alot and in the second one I stand to lose everything.

Confusion!