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Arabian Tower investors seek cancellation |
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Wednesday August 5 2009
A group of investors, claiming two-third majority, has twice petitioned
Dubai's Real Estate Regulatory Agency (Rera) for cancelling Arabian
Tower project in Jumeirah Village.
MF Khan, a spokesperson for
the group, told Emirates Business that the group had met senior Rera
officials on April 1 with a petition for cancellation of the project by
Dubai-based AA Global.
The Rera official, he said, told them
that the agency had the power to cancel the project, but will first
conduct its own investigation to validate the facts/claims of the group
of investors.
The next day the group submitted a detailed
petition with Arabic translation to Rera's office. Since there was no
information from the agency, the investors submitted a second petition
with signatures of more buyers to the legal department of Rera.
"Since
then, our group representatives have so often gone to Rera's office,
but without any result. It seems that unfortunately Rera still is
unreasonably favouring developers, and playing around with buyers,"
said Khan.
He added that the developer sent them a letter on
July 15 informing that he had got the permission for the project and
that construction was about to start.
"It will be impossible
for the developer to complete the project while majority of the buyers
are not going to pay further. He has been given clearance a month after
our second petition.
"We believe it should be for the developer
to prove that majority of buyers favour the project and want it to be
constructed. He should not have given permission to start construction,
unless and until he proves it in a transparent way, with details of
buyers who want so, as they will be members of owners' association,"
said Khan.
Akbar Ali, owner of AA Global, said the company was
in a position to start the project soon but it took time to complete
formalities with various departments.
He claimed as per the
reservation and agreement contract duly signed by the clients, the
developer could make changes in drawing/design to seek final approval
from the authorities.
However, investors said clause 20 of
reservation agreement clearly states that changes will be made only
"for necessary government approvals" – not unilaterally by developer to
cut cost such as by reducing the height of the building.
Further,
the investors said the developer refused to renegotiate prices even as
building material prices have come down drastically.
"He sold
at a time when price was high and is building at a time when cost is
low, thus cheating buyers. He promised a completion date of December
2010, but there is no hope of completing the project on time."
The
developer did not mention when the project will be completed. But the
developer said he was planning to give "best" discount for "valued"
customers in this regard.
"We have submitted design/ drawing
to the authorities for final approval. As soon as we receive it, we
will inform our clients with attractive discount prices."
AA
Global said the project was sold at very low prices (Dh725 per square
feet) compared to the other developers during the peak time. However,
many investors have paid Dh1,000 per sqft, claimed investors.
"Our
clients are valued and if they approach to meet with us we welcome
them. We have updated them time to time regarding our project by email,
post and fax and have send copy to Rera."
Investors also claimed
the developer was "arrogant and not willing to meet them". "He does not
meet us or ever reply to our letters."
Source: Emirates Business 24/7
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