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.The Dubai bubble popped much later than the bubble in the US. With fraud on this scale so early in the game, it will be interesting to see what emerges. I am betting that the level of real estate fraud in Dubai will make the fraud in California seem like a blip on the screen.
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 US$ 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.
Tuesday, January 13, 2009
Real estate fraud in Dubai
I am shocked.