A public prosecutor in the UAE has accepted a criminal complaint against Abraaj Group’s founder Arif Naqvi for issuing a cheque without sufficient funds. The Sharjah judge is scheduled to hear the case on Thursday … reports Asian Lite News.
Arif Naqvi, founder of Abraaj Group, is under investigation in the UAE for issuing cheques without sufficient funds. The news come as the private equity firm is seeking a court-supervised liquidation in Cayman Islands.
Mr Naqvi who is currently ovearseas is facing arrest in the UAE. The bounced cheque was used as a security for approximately $300 million in loans from Hamid Jafar, the founder of the Sharjah-based Crescent Group.
Mitali Atal, Director, Abraaj Group in a statement confirmed the ongoing legal proceedings against Naqvi in absentia.
“Abraaj can confirm that a 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,” stated Mr Atal.
Mr Atal also stated that Mr Naqvi will be represented in this case by Dr Habib Al Mulla, Executive Chairman, Baker McKenzie Habib Al Mulla.
Abraaj was founded in 2002 by Arif Naqvi and emerged to become a leading private equity investor in growth markets with a regional footprint spanning Latin America to South East Asia. The Group has investments which include a portfolio of mature businesses covering diverse sectors including financial services, FMCG, industrials, healthcare, education, manufacturing and logistics
Group’s Latin America, Sub Saharan Africa, North Africa and Turkey Funds management business are transferred to US investment management firm Colony Capital as a part of court-supervised liquidation.
Arif Naqvi, Founder, The Abraaj Group said in a statement, “The intense public scrutiny and highly speculative rumours on these matters have put enormous stress on the Abraaj family of employees and partners, together with our investors and other stakeholders. We appreciate the support we have received from many who understand our circumstances and believe in the fundamental mission we have strived for the past 16 years to fulfil – investing for impact and driving growth. I want to thank our regulators, management teams, colleagues, lenders and advisors for working tirelessly to bring us to this point.”