Dubai Courts earns Dh365m from auctioning seized assets
DUBAI // Dubai Courts retrieved more than Dh365 million in debts through electronic auctions of seized assets over the past 11 months.
From January until the end of November, Dh365,575,450 was made through auctioning cars, properties and others items seized by the courts after cases were lodged against individuals who had not paid their debts, said Yacoub Mohammed Abdullah, head of seized properties.
Mr Abdullah said the sale was conducted by Emirates Auctions and the money raised was then used to repay the debts owed to the claimants.
“The items were valued at Dh283m before the auction was carried out but, when they were auctioned, they were sold for a higher price with a difference of over Dh82m higher than the valued price,” said Mr Abdullah.
The profit gained from selling auctioned cars increased by 82 per cent on last year and, for properties, the profit was 28 per cent.
Assets are seized if an owner is found guilty of not paying the debt. When found guilty by the Court of First Instance and ordered to repay the debt, the verdict has to be upheld by the appeal and cassation courts before any assets are seized.
“After the ruling is final, the debtor is given 15 days to come forward to repay the debt and then, if he fails, the section starts procedures of seizing the debtor’s assets, which later get auctioned,” said Mr Abdullah.
More than 50 images of each auctioned item are posted online, with certificates to display the condition they are in. Cars are tested and fixed, if required, while properties are cleaned and maintained.
Mr Abdullah said that any repairs or fines on seized cars are paid by Emirates Auctions before they go under the hammer and, after their sale, the company takes its costs back.
“They even handle the shipment of the car if the buyer was from outside the country,” he said.
All the paperwork needed to finalise the sale of any assets is also completed by Emirates Auctions.
The items up for auction can be viewed at www.emiratesauction.ae.
Published: December 17, 2014 04:00 AM