Amlak accuses Mazaya on Sky Gardens

"The seller (Mazaya Holding and its subsidiary First Dubai Real Estate Development Company KSCC) has failed to execute the Definitive Agreement and has therefore failed to complete the transaction as provided for in the MoU," Amlak said in an e-mailed statement.

"Accordingly, Amlak has requested the seller to return the down payment made upon signing the MoU in the sum of Dh82 million, in addition to an amount of Dh82 million by way of agreed penalty within seven days of the date of the request, being June 1, 2008.

"Should the seller fail to make payment, Amlak will have no option but to refer the matter to the appropriate legal authorities with an immediate request that the courts freeze all transactions relating to the disputed property until a final ruling is made." The non-completion of the purchase of 80 per cent of Sky Gardens tower was a result of the failure by the seller to sign a Definitive Agreement pursuant to the terms of a MoU signed between the parties dated May 1, 2008, it said.

"The MoU clearly stated that both parties had agreed to work together to complete a Definitive Agreement by May 31, 2008, and in the absence of a signed extension to the MoU, Amlak signed a Definitive Agreement on May 29, 2008 and delivered it to the seller, which the seller refused to receive," the statement said.

Mazaya Holding officials were unavailable for comment when contacted by Gulf News.

Amlak said, the seller issued an official disclosure on May 8, 2008 which was published in its primary market of listing stating that the sale of the property had been completed and further disclosing the profits generated from the transaction. Amlak was not consulted regarding this disclosure, the contents of which are incorrect.

"False disclosures are deemed in some securities markets to be incriminating due to their influence on companies' share prices," it said.

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