Daijiworld Media Network - Dubai
Dubai, Aug 31: An Indian jewellery chain owner and his daughter have been arrested by the Dubai police in connection to bounced cheques worth more than Dh50 million, media reports said.
73-year-old M M Ramachandran (MMR), owner of Atlas jewellery chain, was arrested after a number of banks lodged complaints against him.
Five security circulars were issued against him, with regard to bounced cheques worth more than Dh50 million.
The jewellery chain owner’s daughter, who manages an insurance company affiliated to her father’s group, was also arrested after police received at least 15 complaints against her in bounced cheque cases worth several millions of dirhams.
According to bankers, the businessman owed about Dh550 million to more than 15 banks, while the report quoted a source as saying that he had borrowed funds and the decline in gold prices affected him adversely.
MMR has been a UAE resident for the last 20 years.
The major retail jewellery chain in the UAE also appears to have limited, or no stock of gold across their stores in the UAE. A visit to the Deira, Karama and Bur Dubai branches of the group showed only handful of gold and diamond jewellery on display, stated a report in Khaleej Times, adding that in the Karama branch discounts of between 50 and 60 percent on 18K gold jewellery were being offered to customers, and that at the Bur Dubai outlet, only watches were sold.
The group allegedly owes Dh550 million to 20 banks in both the UAE and India, reports said.
A Bank of Baroda official in Dubai told a daily that Atlas Group owed the bank Dh70 million, the biggest chunk. "The group owes Bank of Baroda Dh70 million. The banks have together formed an informal steering committee and will come to a decision on the jewellery group next week," said the official.
The troubled jewellery retailer is a member of the Dubai Gold and Diamond Jewellery Group, which said it was willing to intervene to find solutions to the financial woes of Atlas, if approached, and after getting a clear picture of the situation.
Atlas Jewellery group is a household name among members of the Malayalee community. It opened its first outlet in Kuwait City in the 1980s. The company moved its headquarters to the UAE in the early 90s. It now has over 48 stores in the UAE, Kuwait and Saudi Arabia.
MMR, a banker-turned-jewellery trader, has played various roles in life as in the movies he made. He produced several films, including the blockbuster Vaishali in Malayalam. He also acted in several Malayalam films. He set up his Dubai jewellery outlet in 1989. In the late 90s, he diversified into the real estate and healthcare sectors. He owns a hospital in Oman and his daughter runs a clinic in Dubai under the banner Atlas Star.
With Inputs from Emirates 24|7 and Khaleej Times