Mashreqbank gets Dh2m from Patels

Mashreqbank has recovered close to Dh2 million more from the absconding Madhav Patel of Solo Industries, taking the total recovery by the bank so far to around Dh12 million.

This makes the total recovery by Mashreqbank more than 25 per cent of the total dues of Dh47 million owed to the bank by the Patels of Solo Industries.

Last May-June Mashreqbank succeeded in recovering the first tranche of Dh10 million from the Patels, making Mashreqbank the only bank from the UAE to recover at least a small portion of the money lost in the infamous Patel scam of 1999.

There is only one bank, apart from Mashreqbank, out of the around 20 banks conned by the Patels, which has been successful in issuing a subpoena to Madhav Patel, the man behind the Dh1.2 billion fraud.

Experts consider issuing a subpoena as a primary requisite for court action in the UK.

The biggest banks victimised by the fraud perpetrated through fake letters of credit and false bills of lading include Citibank, ABN Amro, Barclays, among others. The single largest exposure could be around Dh175 million by one bank, followed by around Dh100 million by another bank.

A statement from Mashreq-bank has said that through relentless UK court proceedings the bank has been able to obtain sales decrees for various properties and other assets. "In some cases, company ownerships have been taken over and their assets sold through specially created Special Purpose Vehicles (SPVs)," added the statement.

Abdul Aziz Al Ghurair, CEO of Mashreqbank, said the bank will be relentless in its legal pursuit. "Our investigations and court actions against Patel and his cronies will be pursued to the bitter end to send a clear message that fraudulent operators cannot escape their liabilities in the UAE simply by fleeing the country," he added.