It appears that Dubai developer DAMAC has been selling off-plan units in a Dubai development called Lotus before it has title to the land. The UN is currently the tenant on the land and the UAE government outlawed the practice of selling prior to gaining title last year.
Source: ArabianBusiness.com
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A Dubai-based lawyer who appeared in UK broadcaster Channel 4’s investigation into Damac Properties has spoken out over the developer’s controversial decision to sell off-plan units on a site occupied by the UN. On Monday night, Channel 4 News aired a special report on the Dubai property market featuring disgruntled Damac investors. One investor said he was not informed that the UN (United Nations) were tenants on the land which Damac intend to develop.
Dubai-based lawyer Ludmila Yamalova, a partner at Al Sayyah Advocates, who featured in the eight minute television report, told Arabian Business: “As far as the Lotus project was concerned, they had launched and sold a project on a plot of land on which there is an existing building occupied by tenants, so I find it highly questionable that they had all the necessary approvals and licenses in place as required by law in order to launch the project.”
This comes less than two weeks after Arabian Business exclusively revealed the Damac UN controversy. Retired UK lawyer Jeff Kershaw is preparing legal action against the developer, and has accused the company of ‘recklessly’ selling off-plan property on a site, which it knew the UN had a tenancy agreement on. Channel 4 obtained documents showing that Damac had been selling off-plan units on the Lotus plot when it was not in possession of the land. The broadcaster alleged that the developer had been selling off-plan property on 21 of its developments before it had possession of the land - a practice outlawed by the Dubai government last August.
It is understood Damac will receive the title deed to the Lotus plot when it has paid the last installment to master developer Dubai Properties.
Earlier in the month Damac told Arabian Business that it owned the land at the Lotus site.
A spokesman for Damac said on Wednesday: "Damac Properties has adhered to all regulatory regulations in regard to The Lotus. The land for the Lotus Development was purchased by Damac Properties, from Dubai Properties, at public auction. "The land and all of the units sold are pre-registered with the Dubai Real Estate Regulatory Authority (RERA). As per the industry standards, DAMAC has been issued the pre-registration certificate by the Dubai Lands Department that turns into title deed at the appropriate time.
"The Real Estate Regulatory Authority’s (RERA) Article 4 of Law 13 states: “No master developer or sub-developer shall commence a project or sell its units off plan before taking possession of the land on which the project is to be built and obtaining the necessary approvals from the competent authorities in the emirate.”
Showing posts with label Damac. Show all posts
Showing posts with label Damac. Show all posts
Thursday, 30 July 2009
Monday, 16 March 2009
Lawyers claim taking bribes on property deals not prohibited
From Arabian Business 16 March '09
Taking bribes and commission on property deals was not prohibited under UAE law, according to lawyers on Sunday who were defending seven former real estate executives charged with corruption.
The lawyers made the statement as five of their clients appeared before the Criminal Court of First Instance in Dubai accused of taking illegal commissions from the sale and resale of land owned by the government.
Four of the five in court were former employees of Sama Dubai, the property arm of the government-owned Dubai Holding, and the fifth was a former employee of Damac, one of the UAE’s largest private property developers.
The five pleaded not guilty to the charges and Judge Fahmi Mounir granted a defence application for an adjournment.
However, all five men were denied bail. The hearing will resume on Sunday, according to UAE daily The National.
Meanwhile, in a separate trial the two other defendants – former employees of Nakheel, the Dubai development company - were also charged with accepting illegal commissions.
The allegedly took an extra two percent for themselves on the sale of land on the Palm Jebel Ali development.
They both pleaded not guilty and were denied bail. The trial was adjourned until Mar. 29.
The two court cases are the first of many due to be heard after a widespread corruption investigation in the UAE, which has resulted in up to 30 executives from several companies being arrested and held in custody.
However, most of those taken in for police questioning have yet to be charged, despite some being arrested more than 10 months ago.
During the two trials the court heard some details of the alleged business practices unearthed by the investigation, such as an alleged AED5m ($1.36m) cash bribe being delivered to a defendant’s home in a black suitcase.
Taking bribes and commission on property deals was not prohibited under UAE law, according to lawyers on Sunday who were defending seven former real estate executives charged with corruption.
The lawyers made the statement as five of their clients appeared before the Criminal Court of First Instance in Dubai accused of taking illegal commissions from the sale and resale of land owned by the government.
Four of the five in court were former employees of Sama Dubai, the property arm of the government-owned Dubai Holding, and the fifth was a former employee of Damac, one of the UAE’s largest private property developers.
The five pleaded not guilty to the charges and Judge Fahmi Mounir granted a defence application for an adjournment.
However, all five men were denied bail. The hearing will resume on Sunday, according to UAE daily The National.
Meanwhile, in a separate trial the two other defendants – former employees of Nakheel, the Dubai development company - were also charged with accepting illegal commissions.
The allegedly took an extra two percent for themselves on the sale of land on the Palm Jebel Ali development.
They both pleaded not guilty and were denied bail. The trial was adjourned until Mar. 29.
The two court cases are the first of many due to be heard after a widespread corruption investigation in the UAE, which has resulted in up to 30 executives from several companies being arrested and held in custody.
However, most of those taken in for police questioning have yet to be charged, despite some being arrested more than 10 months ago.
During the two trials the court heard some details of the alleged business practices unearthed by the investigation, such as an alleged AED5m ($1.36m) cash bribe being delivered to a defendant’s home in a black suitcase.
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