Non-Resident Indian billionaire detained in Dubai for Cheque Bouncing

Brother says arrest is part of a business dispute with a big local partner in a hotel lease

I Syed Shoukath Ali age 58 years Indian holder of Passport No: Z 1288802 hereby state the following:

I have been living in Dubai for the last 26 years and during this period, with my hard work and perseverance I could establish various business interests in the U.A.E. It was although not a very smooth sailing as its normal in any business in any country, but manageable with some adjustments. Here, I am now facing the biggest problems with one of the hotels I took on lease basis. Detail information about the problem is given below. I would need the official intervention in order to resolve this matter and let me live in peace as threats of legal actions by the Owner of the hotel has already damaged my reputation and put me in immense mental tension.

Through Mr. Yousuf Kareem, a Syrian businessman and a friend of mine, I was introduced to Mr. Ali Bin Suloom, the owner of Bin Suloom Plaza Hotel in Deira Dubai, as Mr. Ali Bin Suloom was interested in leasing out his hotel for 10 years at AED 5,000,000/- (Dirhams Five million ) per year. I initially offered AED 3,000,000/- per year and the lease period to be only 5 years as the building was an old and needed repair. After threadbare discussion, negotiation, and persistent chase by Mr. Kareem and Mr. Ali Bin Suloom, I changed the offer to AED 4,000,000/- (Dirhams Four millions) per year payable by Post Dated Cheque in 4 quarterly installments of AED 1,000,000/- per quarter, with a lease of 5 years, Along-with these cheques, I had also issued a Guarantee cheque (undated) for AED 4,000,000/- in favour of Mr. Ali Bin Suloom, which was accepted Accordingly my parent Company Al Bushra Trading Co. LLC signed on 29/04/2003 but effective from 01/05/03 a legal contract for the lease of the Hotel along-with all the shops in the building.

We took the inventory of the hotel and possession of keys of Bars, shops etc except for the shop Nos. 4 and 5. On enquiring with Mr. Ali Bin Suloom, I was told that the keys of Shop Nos 4 and 5 are in the court and they would be given to us in a month's time.

Since Mr. Ali Bin Suloom convinced me about the smooth handling over of the entire management of the Hotel would take some time, till that time I was asked to deposit the daily collections from day one (01/05/03) in his personal account. We did it very obligingly and expecting the return of our money whenever we demanded. I returned to India for some official work, and appointed Mr. Syed Aleem Hussaini as Managing Director of the Hotel. Immediately upon my return from India after 15 days, I asked Mr. Bin Suloom to return the collection of the Hotel deposited in his account. He started giving excuses and after 40 days of collection of hotel revenue in his account, he made me sign by force a Supplementary Contract stating that the commencement date of the Lease Agreement is not from the original date of 01/05/03 (duly signed legally) but from 10/06/03. According to our records, he has collected about AED 1,200,000/- in 40 days. I got infuriated and asked him to cancel the agreement/deal and return our cheques held by him. Instead, he threatened me of legal action and sent me to jail if I didn't pay him AED 4,000,000/- (Dirhams Four millions) as compensation for the cancellation of the contract. Having no other way out, I submitted to his threat and signed the supplementary Agreement reluctantly.

After signing the supplementary agreement on 09/06/03, hotel revenues started to be deposited in my account from 10/06/03. I was asked by Mr. Yousuf Kareem to give the possession of the shop No. 7 of the hotel as Mr. Ali Bin Suloom would like to use it as his office, although it was also part of the original hotel agreement. I handed over this office to Mr. Ali Bin Suloom thinking that it would convenient for us to take his signatures for visas and other hotel related business documents if he is available in the hotel premises. We again asked Mr. Ali Bin Suloom to give us the keys of Shop Nos 4 and 5 as they were part of hotel premises and are included in the original agreement, he told us not to worry and soon it would be given to us.

We spent over AED 1.5 million in repairing and renovating the hotel and the outlets (shops, bars etc), to improve its appearance and quality in order to generate good income thereafter, our relations were better and we could concentrate on our business, and even rented out three (3) shops on the ground floor.

After a month or so, we asked Mr. Ali Bin Suloom for the keys of shop Nos 4 and 5 so that we could rent them out and generate some income. He bluntly refused and told us that these shops didn't belong to us. And if we wanted to take these shops we had to pay a total rent of AED 9 million instead of our originally signed (existing) amount of AED 4 million for the entire building. Without any adherence and respect to the legal documents, he demanded that I pay his 9 million lease rent with immediate effect, which I politely refused. It was shock of my life. To disturb the smooth operation of the hotel, he made various concerned departments through his letters, to regularly harass us. He refused to sign applications for the employment of hotel staff and further refusal to give us transit and Visit visas to bring in hotel guest. It affected me mentally and physically and brought down my hotel business to nothing.

To top it all, he filed false cases against me which were ruled by the authorities in my favour. He threatened to put me behind bars under false pretext. Mr. Ali Bin Suloom is adamant to continue his harassment till I submit to all his illegal demands.

I was made to pay a fine of AED 365,950/- to the Municipal authorities for shop Nos 4 and 5 for the period 2001 to 2003, which has to pay by Mr. Ali Bin Suloom before my agreement. Since we did not have the possession of these shops and Mr. Ali Bin Suloom washed off his hand, we had no choice and in the interest of our heavy monetary involvement in the hotel, we paid the money to the Municipality to avoid the closure of our hotel.

I filed an appeal with the Rent Committee of the Municipality for the of the money and it is sub-judice.

On 08/12/04, I received a call and was asked to come to Al Bukhari Restaurant, one of my hotel's restaurants where I found Mr. Ali Bin Suloom waiting for me. I was enquired about the key of this restaurant which was in my possession as it was a part of the entire hotel lease. I was using this place as a store, keeping furniture, carpets etc. A false complaint was lodged and I was taken to the police station where I was asked by the duty officer if I broke open the lock of this restaurant. I explained that I had the possession of the keys of this room. I provided a surety as I asked by the officer to avoid being sent to the lock up, and he let me go.

We have been facing serious problems since then, as no cooperation is coming from Mr. Ali Bin Suloom and everything is at standstill. Our Trade Licence has expired and due to this reason, we have lost a lot of money paid to the artists from Pakistan and India and Russia to perform in our hotel as no visas could be obtained to bring these artists to Dubai. Bars and restaurants can't function without renewal of the Trade Licence as Mr. Ali Bin Suloom is become stubborn and totally unmoved with the situation we are in. We have been losing money heavily every day. In such a catastrophic situation, I have lost AED 1.5 million in about 2 months and paid AED 1 million rent to Mr. Ali Bin Suloom as per the agreement. In all I have lost more than AED 5 million since taking over of the hotel and losses are mounting every passing day.

The tragedy with this hotel has affected my other businesses as well where more than 200 people are working. It has given me mental agony, monetary loss and fear of going to jail without any fault or crime. I have been living in this country for over 26 years and have achieved success and reputation and regards from every business community I deal with. I never faltered in my business commitments and have honoured them whenever they were due.

With due to respect to the UAE authorities in giving me full support in establishing my various business interest, but Mr. Ali Bin Suloom has made my life miserable and made me suffer heavily in business as well as mentally.

My earnest request to our Indian authorities to intervene in the matter through official channel and approach the appropriate officials in Dubai to convince Mr. Ali Bin Suloom, to honor the judgments of the Dubai Rent Committees to return my cheques given to him including the Guarantee Cheque of AED 4 million, and let me go back to Dubai to continue my other business activities. If I go back my own to Dubai, I might be put behind bars by Mr. Ali Bin Suloom who has already presented my Guarantee Cheque which must have been returned unpaid due to non-availability of funds in my account. He is not supposed to deposit this Cheque as per law, but he can go to any extent to take actions against.

Please save me from the clutches of Mr. Ali Bin Suloom and let me live with honor and dignity in UAE. I have been abiding the laws of the land at all the time and this episode has created havoc in my life and turned everything
against.

I am sure, you can judge the agony I am suffering and losses being made by my other companies due to my absence and lack of concentration in them. Being a honest citizen of India, I appeal to Governments of Andhra Pradesh and India to reduce my suffering and let me live in peace and honesty by resolving my matter with the appropriate authorities of Dubai.

With kind regards

Syed Shoukath Ali