The bounced cheque case is the second criminal case filed against Mr Naqvi by Mr Jafar in recent months on the same grounds.Sarah Dea / The National
The bounced cheque case is the second criminal case filed against Mr Naqvi by Mr Jafar in recent months on the same grounds.Sarah Dea / The National

Abraaj founder faces new bounced cheque case in latest blow to private equity firm



Arif Naqvi, the founder of the Dubai-based Abraaj Group, faces a new criminal case over a bounced cheque, complicating ongoing negotiations between Mr Naqvi and a creditor to reach an out-of-court settlement over unpaid debts, his lawyer said.

The value of the bounced cheque is Dh798 million and a hearing has been scheduled in the UAE on August 14, Habib Al Mulla, executive chairman of Habib Al Mulla Baker Mackenzie, told The National via email on Tuesday.

Earlier this month, a court in Sharjah dismissed a bounced cheque case brought against Mr Naqvi by Hamid Jafar – another founding shareholder in Abraaj – after the parties reached a provisional out-of-court settlement, according to their lawyers.

That case related to a cheque for Dh177.1 million ($48m), jointly signed by Mr Naqvi and an Abraaj executive Rafique Lakhani, and was made out to Mr Jafar. The cheque was used as partial security for around $300m of loans made to Abraaj by Mr Jafar.

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Read more:

Sharjah court dismisses Abraaj founder bounced cheque case

Sharjah court adjourns hearing on Abraaj founder's bounced cheque case to July 11

String of UAE firms disclose exposure to Abraaj Group

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The new case relates to a second cheque used by Mr Naqvi as partial security for the loans, Mr Al Mulla said. “Mr Jafar has submitted it to the prosecution,” he said.

Essam al Tamimi, senior partner at Tamimi and Co and attorney for Hamid Jafar, said there is no longer a settlement.

"The accused has already reneged on what was promised. There has been no settlement, and the matter is for the criminal court under UAE law," he told The National.

After the first case was dismissed, Mr Al Mulla told The National that the "interim" settlement between the two parties covers the entire $300m of loans, not just the Dh177.1m bounced cheque. "The settlement relates to the total outstanding amount," he said.

A spokesman for Mr Jafar confirmed at the time that there was an interim settlement, but a final one has "yet to be reached”. Mr Jafar is now pursuing a fresh bounced cheque claim against Mr Naqvi, according to Mr Al Mulla, who maintained on Tuesday that “a [provisional] settlement has been reached and this case should not have been filed as the settlement should include all cheques for the same loan.

"There are fine details that are still pending and this is a way of exercising pressure to reach a settlement," he told The National.

The punishment for issuing a bounced cheque under UAE law can be jail or a fine. Mr Naqvi, who is in the UK but a Dubai resident, did not attend the hearings for the first case this month, and is not expected to attend the one on August 14.

The new case is the latest blow in a five-month saga involving Dubai-based Abraaj, the private equity firm that is accused of mismanaging investors’ money in a $1 billion healthcare fund. Abraaj has denied the allegations.

Once the biggest private equity firm in the Middle East and North Africa region with about $14bn in assets under management, Abraaj is undergoing a court-supervised restructuring in the Cayman Islands as it seeks a resolution with creditors.

Last month it agreed to sell a chunk of its businesses including its investment management unit to US-based Colony Capital. The sale has yet to complete.

In the meantime, prospective buyers are circling Abraaj, seeking to acquire other parts of its business and funds at fire-sale prices. The provisional liquidators are seeking more bids for the embattled firm’s funds management unit after investors rejected some earlier offers, Bloomberg reported on Tuesday.

Interested buyers reportedly have until August 24 to bid for all of the asset-management platform or some of its private equity funds.

The specs: 2018 Chevrolet Trailblazer

Price, base / as tested Dh99,000 / Dh132,000

Engine 3.6L V6

Transmission: Six-speed automatic

Power 275hp @ 6,000rpm

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Fuel economy combined 12.2L / 100km

The Settlers

Director: Louis Theroux

Starring: Daniella Weiss, Ari Abramowitz

Rating: 5/5

MISSION: IMPOSSIBLE – FINAL RECKONING

Director: Christopher McQuarrie

Starring: Tom Cruise, Hayley Atwell, Simon Pegg

Rating: 4/5

ONCE UPON A TIME IN GAZA

Starring: Nader Abd Alhay, Majd Eid, Ramzi Maqdisi

Directors: Tarzan and Arab Nasser

Rating: 4.5/5

The specs
Engine: 4.0-litre flat-six
Power: 510hp at 9,000rpm
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Who has been sanctioned?

Daniella Weiss and Nachala
Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.

Harel Libi & Libi Construction and Infrastructure
Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.

Zohar Sabah
Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.

Coco’s Farm and Neria’s Farm
These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.

LILO & STITCH

Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders

Director: Dean Fleischer Camp

Rating: 4.5/5

War and the virus
At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
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Al Menhali 27', Tagliabue 79'

Al Nassr 3

Hamdallah 41', Giuliano 45 1', 62'

Abu Dhabi GP Saturday schedule

12.30pm GP3 race (18 laps)

2pm Formula One final practice 

5pm Formula One qualifying

6.40pm Formula 2 race (31 laps)

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MATCH INFO

Uefa Champions League semi-final, first leg

Barcelona v Liverpool, Wednesday, 11pm (UAE).

Second leg

Liverpool v Barcelona, Tuesday, May 7, 11pm

Games on BeIN Sports

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Libya's Gold

UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves. 

The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.

Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.

A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.