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Dubai to set up refund system for stalled projects

by Courtney Trenwith on Jul 30, 2013




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Dubai's government will establish a legal committee to liquidate cancelled property projects and settle related disputes, including paying out investors who have struggled to get their money back from developers.

The system will apply to projects that have been cancelled by the Real Estate Regulatory Agency (RERA).

Countless projects were announced during the Dubai property boom but were postponed or cancelled – either partway through construction or before work had begun – when the market dramatically dropped in 2008-09.

Many sites have sat idle for several years, although not all affected projects have been officially cancelled and some developers claim frozen projects, such as Palm Jebel Ali and The World, will still go ahead.

Last month, the Cayan Tower - a twisted residential tower in Dubai Marina - was finally completed after remaining part-finished for several years.

A statement on the Emirates News Agency WAM says specialists and consultants will be appointed to the committee, while developers will be required to provide their audited financial status and evidence of all cash transfers and deposits related to the failed projects.

“The committee has the right to take actions and issue decisions to guarantee the rights of those who have purchased property that fall into this category,” the statement said.

The decree, issued by the ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum, immediately puts on hold any cases or appeals related to cancelled properties presently before other courts, which will no longer be able to hear such cases.

Decisions by the committee will be final, with no avenue to appeal.


FEATURED COMMENT

The correct step in the right direction by Dubai Government. This will instill further confidence & trust in the recover

  2 Comments


Readers' Comments


Clarence S Lewis (Jul 31, 2013)
Dubai
United Arab Emirates

Dubai to set up refund system for stalled projects
The correct step in the right direction by Dubai Government. This will instill further confidence & trust in the recovery of the real estate market. Further steps should also be taken to cover all of the upcoming projects which have been newly-launched, or the past projects which were on hold due to the recession factor & revived again. However, certain other measures also need to be taken for disclosure of Escrow account, RERA Reg., Project ID, etc & the other relevant details concerning the project. All these measures will compliment the steps taken by the government to create a vibrant & a attractive realty market which will be shining example.

Claire (Jul 31, 2013)
London
United Kingdom

Metropolis Lofts in JVS, Dubai
At last thanks to His Highness and the new committee, there will be justice and compassion for innocent property buyers who have suffered severely since 2007. I have a daughter who is seriously ill and I need to have my refund so that I can fund her operation. People don't realise the pain and suffering property buyers like me have gone through. I have wriiten 50 letters, gone to the Embassy and tried everything but this news will restore Dubai's image. Please proceed with the refunds for my daughter's sake. I hope Bally Chohan, Developer of Met Lofts http://www.ukcapitalinvestments.com/ goes to a Dubai prison and pays for all the crimes against innocent people like me. He used our money to fund his illegal activities and ruined Dubai's reputation. Time has come Bally.....It's payback time as Met Loft investors haven't given up and are still very active.


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