Abu Dhabi Court orders Dh195,000 repayment in failed car investment scheme

Abu Dhabi: An Abu Dhabi court has ordered a man to pay Dh195,000 to another individual after a financial arrangement involving a proposed investment in cars broke down and the funds were not repaid.

The dispute centred on a claim brought by a man who said he had been persuaded to transfer money to a friend and the friend’s sister, with the understanding that the funds would be invested in a car business and generate returns. The claimant had requested that Dh200,000 be transferred to the sister’s account for this purpose.

Court documents, according to Al Khaleej newspaper, show that the claimant transferred Dh165,000 to the sister’s bank account and Dh30,000 to the account of the friend, bringing the total amount actually paid to Dh195,000.

The arrangement was reportedly that the returns from the proposed car investments would be used to service the loan instalments and provide additional profit for the claimant.

When the claimant later sought repayment of the principal and any accrued returns, the defendants began to delay and ultimately refused to make any payments, according to the court record. The claimant then filed a complaint alleging fraud and deception.

During the proceedings, both the friend and his sister acknowledged receiving the funds and conceded that they had not returned them. The court found that the amounts in question remained owed to the claimant.

The judgment held that the defendant’s financial liability was established, and the court ordered that Dh195,000 be repaid.