Process on to find satisfactory solution for all parties: Abraaj

DUBAI: A public prosecutor in Sharjah has accepted a criminal complaint against Pakistani founder of private equity and investment firm Abraaj Group, Arif Naqvi, for issuing a cheque without sufficient funds. In the United Arab Emirates (UAE), cheque bounce is treated as criminal offence.

Currently, Arif Naqvi is facing arrest in the United Arab Emirates relating to a cheque bounce case. The complaint against Arif Naqvi and another Abraaj director, Muhammad Rafique Lakhani, was filed in Sharjah over a bounced cheque.

According to reports, the cheques were issued as a security on a loan of about $200 million to Abraaj and $100 million to Arif Naqvi by the founder of the Sharjah-based Crescent Group Hamid Jafar.

A judge in Sharjah is scheduled on Thursday to rule on whether Arif Naqvi and Muhammad Lakhani issued the cheque without the necessary funds, according to a prosecution clerk and copies of court documents.

In the statement issued to The News, Abraaj Group confirmed the loan transaction stating, “Loan was granted and security provided in a pure commercial transaction. Partial repayment of the loan has been made and settlement discussions are ongoing with the intent to arrive at a satisfactory solution for all parties.”

Executive Chairman, Baker McKenzie Habib Al Mulla Dr Habib Al Mulla, who has been representing Arif Naqvi in the case, maintained that the cheques were provided as security for the loans. “It should be noted that the cheques were provided as part of a security package and as such should not have been submitted to a criminal court,” Abraaj said in the statement. Abraaj group’s headquarter is in Dubai but its founder Arif Naqvi, who is resident of Dubai, is currently out of United Arab Emirates.