Dubai World crisis: D-company runs into a wall

MUMBAI: The widely-published photograph of underworld don Dawood Ibrahim watching cricket in Dubai, cigar comfortably nestling between his lips and designer sunglasses firmly planted on his face, may soon morph into the bhai nervously chewing the stick.

The Karachi-based gangster, who is a dreaded name in Mumbai’s underworld, found a safe haven for his ill-gotten wealth in the desert state’s real estate market through benami deals. But like most investors who’ve hit hard ground in the current Dubai World crisis, he may also be licking his wounds.

During the boom years, many investors leveraged the easy availability of money and invested in Dubai’s real estate. Flush with cash, the gang operators found a safe refuge in the local realty sector, with its galloping prices. The dream saw its first twist in the post-Lehman crisis, when property prices crashed by half. And just when things looked like they would recover, Dawood and Gang are set to receive a big jolt, with property prices headed further south. Exotic multi-billion dollar villas on man-made islands with the best of amenities will no longer be sought-after, say analysts.

Law enforcement agencies here are keeping a close eye on distress signals that may emanate from Dubai. They fear he may offset his losses in India, a senior official in the security establishment said on condition anonymity. “We have been fairly successful in curbing their activities here. The developments in Middle East will only rub salt into their wounds,” he said.



1993 Mumbai blasts case accused Karimullah Shaikh, who was arrested late last year, has reportedly given clues to the law enforcement agencies about Dawood’s hawala dealings and his investments in Dubai and Pakistan. Dawood has accommodated all the co-accused of the attacks in different businesses, with real estate being a favourite.

Senior officials from the city police’s crime branch were not immediately available for comment on the fallout of the Dubai crisis closer home as they were ensconced in urgent meetings arising out of their chief Rakesh Maria’s offer to resign over some allegations levelled against him.