Judicial Bench Mandates Refund of Principal Funds, Moral Damages, and Legal Interest After Uncovering Phantom Property Deal and Fraudulent Residency Promises.
Executive Overview of the Judicial Ruling
The Dubai Civil Court of First Instance has made a landmark ruling, ordering a group of fraudsters to repay the total amount of Dh4.65 million to a foreign investor after they fell victim to a property fraud linked to UAE Golden Visas.
The judgement orders the fraudsters to repay the investor their initial investment in full as well as significant compensation. This demonstrates that the UAE judiciary system has zero tolerance when it comes to investments fraud and strengthens the protections around long term residency applications.
Court documents show the defendants took advantage of the increased global demand for the UAE’s 10 year Golden Visa programme by falsely claiming to be able to purchase the property through other means and also had exclusive authority.
Anatomy of the Golden Visa Property Scam
This involved slick marketing, fake documents and false promises of guaranteed approvals. Phantom Real Estate Investment The fraudsters requested Dh4.35 million from the victim claiming that they would purchase eligible real estate assets on their behalf in order for them to qualify for long term residency.
Misleading approvals The fraudsters claimed that they had private approvals which meant the victim would not have to go through the usual government processes. They charged high fees for a service which does not exist.
Non transfer of ownership Financial audits proved that the money was transferred into private accounts and there were no proven title deeds obtained through the Dubai Land Department (DLD). Criminal complaints were made and civil action taken after the deal went wrong.
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Breakdown of the Financial Judgment and Damages
The court concluded that the defendants were jointly liable for the total financial loss and suffering of the victim. Restitution: The defendants are to pay back the principal amount of Dh4.35 million which was unlawfully gained through the false property deal.
1.Compensation: The defendants must pay further compensation of Dh300,000. This is to cover the cost of the lost investment opportunity and legal costs.
2.Legal Interest: The court has decided that there will be legal interest at 5% per annum applied to the principal amount from the date of filing.
3.Court Fees: There will also be court fees and legal costs. It has been noted in the judgement that guarantees from intermediaries regarding approval for residency go against federal regulations.
Dubai Authorities Enforce Stricter Oversight to Prevent Future UAE Golden Visa Scam Operations
Authorities across the Emirate are cracking down on real estate escrow accounts following the latest verdict.
Authorities said they will take swift action against any unauthorised agencies offering fake residency guarantees.
Dubai Land Department officials have urged real estate buyers to only deal with licensed agents to avoid becoming a victim of scams.
Safeguarding Investors Against UAE Residency Fraud
Legal professionals and residency experts recommend that international investors take a genuine and official approach to attain a UAE Golden Visa. The modern legal processes put in place by the General Directorate of Residency and Foreigners Affairs (GDRFA) and the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) are fully transparent and digital.
Any and all real estate assets should be checked using the Dubai REST application. This will help ensure that any third parties have current licensing from the Real Estate Regulatory Agency (RERA).
Also Read: https://timesofdubai.ae/uae-cfos-embrace-ai-as-corporate-tax-rules-tighten/
