The owner of Dubai-based Atlas Jewellery and his daughter have been detained by police over bounced cheques, according to a local media report.
Dubai Police reportedly told Khaleej Times the owner of the major jewellery chain was arrested following a number of complaints lodged against the group by banks. The newspaper said the owner’s daughter was also arrested in relation to bounced cheques and is being held at a women’s detention centre in Bur Dubai.
Police have reportedly received five complaints from different banks, lodged at various stations in the Creek area of the city, including Bur Dubai where a complaint was lodged regarding a cheque worth AED34 million ($9.2 million).
According to Khaleej Times, Atlas has defaulted on payments with as many as 20 banks in the UAE and India over debts reaching AED600 million ($163 million).
An official with Bank of Baroda Dubai, speaking on condition of anonymity, told the newspaper: “The group owes Bank of Baroda AED70 million ($19 million). The banks have together formed an informal steering committee and will come to a decision on the jewellery group next week.”
Tawhid Abdullah, chairman of Dubai Gold and Jewellery Group, said it was willing to provide any assistance it could to help find a solution to the problems.
“However, we have not directly heard from Atlas Jewellery or from its creditor banks,” said Abdullah. “Nobody has approached us asking for our intervention. We would like to help, and are happy to do so. But we need to get a clear picture,” he added.
Atlas Jewellery Group, with its headquarters in Dubai, has over 48 stores in the UAE, Kuwait and Saudi Arabia. The group also diversified into the real estate and healthcare sectors in the late 1990s.
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