A principal shareholder of Define Properties has been detained by Dubai authorities on provisional charges of fraud, prosecutors said.
The arrest of the executive comes in the middle of negotiations with Alternative Capital Invest Real Estate, a Germany-based property developer operating in Dubai, to take over some of Define’s assets.
The major shareholder was arrested in mid-March after complaints were filed by an investor in Define Properties, said Tarek Daoud, the administration director of the company. He said the amount being sought by the investor was close to Dh30 million (US$8.1m).
'He is arrested and in Bur Dubai police station,' Daoud said. A lawyer for the detained executive did not return messages.