UAE | General
Sharjah-based company owner agrees to settle employees' loans within 15 days
The owner of a Sharjah-based company who allegedly made his employees take personal loans to wriggle out of a financial crisis has come forward to settle all the dues within two weeks.
- By Anjana Sankar, Senior Reporter
- Published: 23:25 August 4, 2008
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Loan trap: Employees fear arrest
Employees fear arrest after taking out huge loans for Sharjah-based company
Dubai: The owner of a Sharjah-based company who allegedly made his employees take personal loans to wriggle out of a financial crisis has come forward to settle all the dues within two weeks.
Gulf News had exposed the plight of some employees of City Emperor General Trading LLC who said they face arrest after banks have filed cases against them for dud cheques and failed payments.
The staff, more than 30, claimed that they have ended up in deep debt running to millions of dirhams in total, after heeding to their company's assurances that the management will be solely responsible for the bank payments. According to them, the company backtracked leaving them in a financial and legal mess.
However, K.P. Biju Kumar, Managing Director of the group of companies, which also run the Al Qathara supermarkets and department stores in Abu Dhabi, where the grieved parties were working, told Gulf News that within 15 days, all the dues in his employees' names will be cleared.
"The company had taken loans of up to Dh4.38 million in the name of its employees. Out of that, only Dh2.1 million is pending, which I will clear before August 15. I have met with the banks' representatives, and they have also agreed to it," said Biju Kumar.
Rubbishing allegations of fraud against him made by some of the employees, Biju Kumar noted that he stopped payment of loans in the name of a handful of employees after they absconded from the company.
Allegations
"Out of the 30 employees who took loans for us, only four or five are making these allegations. These are the people who absconded from my company after misappropriating huge sums," he said adding that all other staff were still working for him.
According to Biju Kumar, the ousted employees like Mohammad Iqbal who has claimed to have loans amounting to Dh700,000, have sided with the original owner of Al Qathara supermarkets, and have fraudulently taken over the establishment from him before the end of the lease period.
"I have leased the supermarket chain for a period of ten years. But now that the establishment is picking up business, they have taken it over from me by making false documents. I have filed a case against them in the Abu Dhabi court," he added.
However, when contacted, Moideen Abdullah who owns Al Qathara maintained that Biju Kumar has done foul play and claimed his company's stocks worth millions.
Responding to Biju Kumar's promises of closing the loans, Mohammad Iqbal and other employees who approached Gulf News earlier said they are relieved to know that the company will settle the dues and clear them off debts they incurred for the firm.
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