Dubai authorities seize assets of Schon Properties, owners of PSL team Multan Sultans

Dubai authorities seize assets of Schon Properties, owners of PSL team Multan Sultans
The Dubai Land Department requires investors to deposit money in Escrow accounts and transfer payments to developers in line with the percentage of completion of projects. (Photo courtesy: @MultanSultans/Twitter)
Updated 03 August 2018

Dubai authorities seize assets of Schon Properties, owners of PSL team Multan Sultans

Dubai authorities seize assets of Schon Properties, owners of PSL team Multan Sultans

DUBAI: The Dubai Land Department has seized property, land and an Escrow account registered to Schon Properties, owners of Pakistan Super League cricket team the Multan Sultans.
The Government of Dubai Media Office said the DLD decided to act while Dubai Public Prosecution and Dubai Courts pursue legal action against the company.
“The step is aimed at protecting the rights of investors in light of Schon Properties’ actions of exploiting investors by refraining from depositing their money in an Escrow (guarantee) account,” the DLD said.
The Dubai Land Department requires investors to deposit money in Escrow accounts and transfer payments to developers in line with the percentage of completion of projects.
“This is the only way investors can preserve their money and ensure their rights are protected. Buyers are advised not to make payments to developers outside Escrow accounts,” the office said.
The DLD explained that the requirement is part of its efforts to provide a well-regulated and transparent investment environment that provides all the necessary protections for all parties and safeguards their rights.
Schon Properties bought the newly created Multan Sultans franchise with a winning bid of $41.6 million in 2017, paying $5.2 million a season for eight seasons. This made the team the most expensive of the six PSL franchises.
The company was founded in 2007 by brothers Tahir Hussain Schon and Nasir Hussain Schon from Karachi. Their main projects are in Dubai, including Dubai Lagoon, iSuites, Schon Business Park, and Eco-Friendly Development. For several years, the business has been plagued by complaints from investors about delayed handovers and other problems.
According to media reports, in Pakistan Schon Group is on the National Accountability Bureau’s radar, after it was involved in a loan default and faced allegations of involvement in a financial scam worth PKR 1.245 billion ($10.1 million).
Arab News tried to contact Danial Schon, one of the company’s directors, for comment but he was unreachable.