Indian owner of JBF leaves Dubai with Dh2 billion (Rs57.38 bn) loan

DUBAI: One of the biggest defaulters in the UAE ever — Cheerag Arya — of JBF with factories in Ras Al Khaimah (RAK), Belgium, Bahrain, Gujarat etc in polyester film and packaging etc has run away leaving a bank and creditor debt of about 2 billion dirhams (Rs57.38 billion), reports foreign media.

This is so far the largest debtor to run from UAE in the history of UAE. It will impact hundreds of people who had supplied anything to this company. JBF was the top five producer of PET chips in the world.

Previously, two known persons have escaped Dubai leaving a debt of 1 billion dirhams each, and now an individual is gone with Dh2 billion debt. JBF owner had a Dh50 million house in Versace, owned 12 Ferraris. He hails from Mumbai and had recently married an Australian lady.

His father was called back by Mashreq Bank to discuss a resolution and was arrested the moment he landed back. Earlier both father and son had left the UAE. According to Reuters, manufacturer JBF RAK, which is 60 per cent owned by the UAE’s Ras Al Khaimah Investment Authority (Rakia), is in talks with banks about renegotiating around Dh2 billion ($544.6 million) of debt, banking sources told Reuters.

The polyester producer, which according to its website is an affiliate of India’s JBF Group, has contacted lenders about reviewing its debt obligations, said the sources, who spoke on condition of anonymity as the matter is not public.

JBF RAK and Rakia did not respond to a Reuters request for comment. JBF RAK manufactures a synthetic fibre and resin which is not only spun into fabrics but also moulded into disposable bottles for beverages, shampoo and liquid soap.