One More Indian Fraudster Arrested
It's the season for dubious businessmen to face reality. The man who shot to fame selling electronics (mostly TVs and Hi-Fis) at dirt cheap prices in the 90s is the latest Indian businessman to end up behind bars. Kabir Mulchandani has been arrested in Dubai for duping customers in real estate transactions. Back in the 90s, Kabir ran a firm called Baron International and sold cheap electronics products under brands like Akai, Aiwa and TCL. The TVs used to be priced around Rs 10K when most other brands used to cost upwards of Rs 20K. Kabir also made a name for himself bundling the different products and offering unbelievable exchange offers. The fact that he couldn't run a brand for more than 2 years, probably hinted that his model was not sustainable. Since the brands didn't last long, he lost the consumers' trust since people had concerns about after sales service and repairs. It looks like Kabir's family had moved to the Middle East after running up huge debts in India.
Scores of investors have been allegedly defrauded of over US$ 100 million by Mulchandani, chairman of `Dynasty Zarooni'. At least 10 members of an `investment club,' which last year promised huge profits from the company's preferential access to real estate deals, have lodged complaints against Mulchandani, his Emirati business partner, Hilal Al Zarooni, their joint venture `Dynasty Zarooni' and two other employees.Investors say Mulchandani in March received subscription fees of US$ 81,697 (Rs 40 lakh) a month from 12 members. He promised them returns of US$ 272,242 (Rs 1.3 crore) a month after six months, or US$ 1,633,453 (Rs 8 crore) in September. Zarooni is reported to have denied any participation in, or knowledge of, a fraudulent scheme. "One hundred per cent I deny this, there is nothing illegal whatsoever,'' he said. (Link)