DUBAI: The real estate authority of government of Dubai has ordered to seize the properties and land plots registered to Pakistani construction group Schon Properties functioning here in Dubai since 2007.
The official twitter account of Dubai government also posted a tweet to announce the decision to seize properties and land plots registered to the developer including the funds deposited in the company’s escrow account.
An escrow is an account established by a broker for holding funds on behalf of the broker’s principal or some other person until the consummation or termination of a transaction.
The decision was made in order to secure the “rights of all investors & other parties” until the Dubai Public Prosecution and Dubai Courts complete legal procedures.
According to Dubai Land Department (DLD), the decision of seizure is “designed to safeguard the rights of investors after Schon has exploited their funds and [did] not deposit them into the escrow account”.
Sources close to Schon group informed The News that the developer had been trying to fix the financial issues with authorities as well as its clients to avoid the legal actions but they could not make it. Sources claimed that the Schon properties was hoping to rectify the issues.
The Dubai Land Department, which has seized Schon plots and Properties, will refer the case to the Public Prosecution and Dubai Courts, for the recovery of all investor and other parties rights.
Dubai government makes sure transparency of the market to attract the investors and safeguard the interests of their clients specially in real estate sector though regulation from government agencies such as Rera (Real Estate Regulatory Agency) and the DLD.