The chairman of Atlas Group, MM Ramachandran, has been arrested by the Dubai police, media reports said. However, the businessman's PA has rubbished the claims.
Reuters reports that the Indian businessman and his daughter were arrested by the Dubai police, after the Atlas Group failed to repay a collective loan of about Dirham 500 million (Rs 1,000 Crore) to 15 different banks.
According to the news agency, the banks that were affected by the alleged default – two of which are Indian banks - held a meeting last week, but were unable to reach an amicable solution.
While they report that some banks are quite lenient on Atlas, and are even willing to write off the debt, Gulf News is suggesting that Ramachandran committed wilful default, in-order to purchase 51 per cent equity in Gee El Woollens Ltd. He has also reportedly renamed the defunct company Atlas Jewellery India.
Gulf News also claims to have the latest audited balance sheet of Atlas Jewellery group in Dubai, which shows that the company made a net profit of Dirham 20.3 million. It also shows that the company has a "healthy inventory of stocks and other assets", whereas, an earlier report had suggested that due to financial troubles, the company is returning most of it's inventory and selling the rest at huge discounts.
However, the Dubai Gold and Diamond Jewellery Group claims that Ramachandran did not intend to dupe anyone and that they are willing to help the Indian businessman get back on his feet by discussing matters with the concerned banks.
Following the lead of the Group's chairman Tawhid Abdullah, many members of the Malayali media in Dubai - including Sathyam Online - have also come forward to lend a helping hand.
Meanwhile, Ramachandran's personal secretary maintains that media reports regarding the astronomical debts and arrests are hoax. The PA, Shyam, said that Ramachandran is not feeling too well and that he has been resting at his Dubai residence.