Tuesday, June 23, 2009

Al Barakah places new option before property investors

Al Barakah, the real estate developer, who has been much in the new off-late for allegedly bouncing cheques worth more than Dh.40mn, has now requested its investors to drop all their claims against the company, and in return, the CEO has promised shares fin a new holding company.

The proposal was circulated by the company to all its investors, and advertisements were placed in local newspapers, inviting the investors to submit claims to Horwath MAK, an auditing company in Dubai.

According to Tariq Minhaj, an Al Barakah representative, the company is now planning to build its long-delayed projects, with a UK-based construction company.

Several hundreds of investors suffered losses after investing on off-plan properties in about half a dozen towers that are yet to see the light of the day. The investors were lured by the guaranteed buy-back scheme, wherein the company had pledged to re-acquire its properties within few months after sale, with a 50 percent profit on the down-payment.

Few of the investors were given post-dated cheques as a guarantee, while few others were given only MoUs (Memorandum of Understandings). Once the cheques began bouncing, the Chief Executive of the company, Imran Khan went hiding, and now the police is in search of him.

Al Barakah has a dozen projects on the drawing board in Dubai and Ajman, including the 'tallest tower to-be' in Ajman.

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