Emirates City Forum

Looks like the news abt mehwal is true.confirmed from few sources .This is a very bad thing for emirates city again.god knows how many more such news are still to b published.keep your fingers crossed.

Let’s try to understand what is going on:
1- Although the projects in Mehwal website listed, it doesn’t mean
he is the real contractor of these projects. (lot of false info. usually published in the net for marketing reasons).
2- Also it doesn’t mean all of them current projects because may some of them previous projects like Villas and almost only half of the projects listed are in E.C.
3- Only 16 photos of 16 projects in E.C. are shown in Mehwal’s main page website.
4- In the list in Mehwal’s website only 3 projects in E.C. listed its job value.
5- According to the list only 18 projects are in E.C., Mehwal has no capabilities in any way to construct 18 projects at the same time in 2.5 years, Both Mehwal & Developers know that well at time of signing the contract with him, So, it is clear both have the bad faith to not complete the projects.
6- Most of the developers already got 70% - 40% of projects selling price, and according to AlFurgan developer, Mehwal got only down payment and usually down payment did not exceed 10% of contract value which may equal not more than 5% of project selling price and that means the developers still have 65%-35% of the selling price already got from investors, as a result the developers have no problem with financing the construction of the projects.
7- Running away of contractors or termination of contracts between developers and contractors during construction of projects are common, So resuming construction is not a problem in case the developer has enough finance and reputation, and only became a problem if developer has lack of trust among contractors.
8- All of us know that when ARRA started registration of developers and their projects, it announced that investors should stop transfer payments until escrow accounts established, Developers had complained to ARRA that they can’t continue paying contractors in case investors stop payments (although they had enough money already got it from investors, as explained above) and ARRA agreed with them to stop paying contractors and consequently construction of projects freeze.

Although Mehwal part of the problem, he is just an escape goat of Developers dishonesty, they may use it an excuse to delay or not complete the projects and after that the so called “difficulties” in getting NOC (No object certificate) from contractor and throw that “delay” also on shoulders of Ajman municipality.

The mess created in E.C. by the betrayal of both developers and contractors, bad faith and incompetence of Master developer and lack of regulations, the absence of vision and inexperience of ARRA and also exaggeration in good intentions of investors (may Naivety of some of us as investors).