Millions involved in funds embezzlement
KUWAIT CITY, Dec 3: Ministry of Commerce and Industry has referred a group of six real estate cases so far to the prosecution, against the backdrop of complaints about real estate fraud, indicating almost the same people involved in those cases specialize in exhibitions and real estate marketing, reports Al-Rai daily.
The daily quoting sources pointed out that the six groups referred to prosecution include two famous companies whose files are being deliberated by the judiciary, as funds involved is estimated at KD 7 million, while complaints against the other companies are still being probed.
“After examining all real estate complaints submitted, the ministry sorted 1,150 complaints worth no more than KD 40 million, and referred about 700 of them to prosecution”, sources said, pointing to various complaints related to embezzlement and fraud, contractual differences between companies and agents, violation of Anti Money Laundering and Combating Terrorist Financing (AML/CFT) regulations.
“Many of the real estate complaints revolve around non-compliance with contracts signed by the companies regarding real estate units sold inside and outside Kuwait and breaching their obligations either by not delivering the documents related to the sold units, non-payment of the agreed returns for those units or discrepancies in sold units description or location or delivery.
Regarding the aforementioned figures of complaints received by the Ministry of Trade and Industry, which exceed 1150, sources pointed out that a large portion of the complaints related to contractual differences were resolved amicably through the relevant authority, which is the public prosecution and not the ministry.
“Some of the complaints came from individuals who had already received their units, but later discovered some disturbing logistical details (from their point of view), pointing out that one of the complaints submitted to the ministry was made by a citizen who had purchased a housing unit outside the country and later discovered that not many taxis will reach him at the location, which he interpreted as real estate fraud”, explained the sources.