MFR Properties begins payback with heavy discounts

MFR Properties, the Dubai-based real estate brokerage company which had its licence suspended by the Real Estate Regulatory Agency (Rera) and is under investigation by the Dubai Land Department, has opened its offices.

However, the only business at hand, and this will bring hope for hundreds of investors, is the settlement of outstanding dues.

Emirates 24|7 had last week ,in an exclusive report, exposed the alleged fraud that MFR, using a complicated leasing structure, had perpetrated upon landlords, tenants and brokers here in the UAE, running into millions of dirhams.

CLICK HERE TO READ HOW MFR’S MILLION-DIRHAM TRAP OPERATED

Mohammad Fahad Razzaq, the man behind MFR, spoke to this website in that report and at the time pledged to return all monies owned.

That process has now begun.

However, it is not Mohammad Fahad Razzaq that anxious creditors at the Al Attar office of MFR here in Dubai will meet.

Instead, negotiations are being done by people claiming to be Razzaq’s family members.

"I am just here to help. I have no involvement with MFR except for family ties," says a man claiming to be a cousin, but who asked not to be named.

MFR staff are present, but only to verify facts.

“Razzaq is dealing with Rera at the moment. He is not in prison; he is just very busy," says the cousin.

"We are trying to reach settlements now," he explains. “We offer to pay outstanding and upcoming cheques, but at a discount."

Tara is one of the landlords sitting in the waiting room of the office.

"This is the fifth time I have come here since they reopened," the Iranian says. "They offered a payment of 50 per cent. I cannot agree with that. At the same time, I need to inject money in my own business. I do not have much time to waste."

Mohan Daryanani has come all the way from London to settle his dues with MFR.

"I made a handshake yesterday and thought everything was settled. I agreed to a payment of Dh20,000, although they owe me Dh27,000. But the person I spoke to changed his mind in five minutes and told me to come back the next day. I am here, and he is not. I am flying out tonight, so I do not know what to do."

According to the cousin the settlement approach has been successful thus far. "We have paid back 45-50 per cent of our clients. Most of the time we are able to channel the funds as promised."

Asked how MFR is able to sustain this constant flow of cash, the cousin explains that the family has managed to channel through funds of other businesses, which he did not wish to identify.

"Of course MFR cannot pay back everybody at the same time. We prioritise the people who have smaller outstanding cheques at the moment, because they are more likely to settle. People who do wish to settle will be paid later, and according to the schedule of upcoming cheques.

"It is important now to win the trust of the clients. Everybody is panicking at the moment and running around in circles. We would like them all to come to us, so we can discuss what the options are. In this way we will be better able to manage a solution."

In the waiting room not everybody shares the positive vibe and many leave with disappointment and increased frustration. "I will not negotiate. I will bring this to court," says a landlord storming out of the office.

Another property owner reached an agreement the day before and got paid, only to find out the day after, that his previously furnished apartment is now unfurnished.

"Now we are here to reach an agreement about the furniture," he says laughingly.

At the end of the day, just a couple of hours before his flight a happy Mohan calls this newspaper. "I got my money!" he says. 

"I settled for Dh17,000. And I got a lunch too. Kentucky Fried Chicken."

Follow Emirates 24|7 on Google News.