Picture for illustrative purposes only. ARCHIVE

The Dubai Criminal Court has dismissed a high-profile Dh10.8 million embezzlement case involving a restaurant investment, ruling that the dispute falls under civil law rather than criminal offence. Prosecutors accused two men of embezzling Dh10,809,231 entrusted to them for securing a 50 percent stake in a Dubai-based restaurant under a 2019 Memorandum of Understanding. However, the court ruled that the money had been transferred as part of a commercial agreement to acquire shares and cover operational expenses, not under a legally recognized “contract of trust.” Vishal Tinani, legal advisor on the case, said: “Simply failing to meet contractual obligations, even when large sums are involved, does not automatically constitute a criminal offence. Criminal breach of trust requires the funds to be transferred under a legally recognised fiduciary arrangement, with intent to misappropriate.” The ruling clarifies the legal boundaries between civil and criminal liability in investment disputes, serving as a caution for investors in Dubai to draft agreements with clear fiduciary terms. ICA/Expat Media
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