According to court records, Dubai-based Indian businessman Kalpesh Kinariwala was given until September 28 to pay $28,615,643.57.
The case revolved around Kinariwala’s involvement in an alleged scheme to embezzle and defraud a Chilean iodine company.
“The Court hereby rules as follows: the appeal shall be admitted in formalities, and, in substance, the appealed judgement is hereby cancelled and a new judgement is hereby issued obligating the defendants to pay the appellant $28,615,643.57, or the equivalent thereof in UAE dirhams, plus legal interest thereon at 5 percent from the date of initiating the legal claim on 13/7/2021 to the date of full payment,” the judgement read.
Kinariwala is the Chairman, CEO and owner of the Pantheon Group of Companies, which engaged in a business partnership with the case’s claimant, Sociedad Contractual Minera Cosayach Yodo, the Chilean iodine firm.
According to Cosayach’s defense, Kinariwala paid a sales executive at the company to secure at least 80 percent of the iodine manufactured by Cosayach. This move facilitated “his embezzlement, fraud and deceit in his dealings” with Cosayach, the company’s defense said as listed in the judgement document.
This iodine would then be sold on behalf of Cosayach, with Kinariwala’s companies receiving a commission on the sale, and Cosayach assuming shipping costs and letter of guarantee, the company’s defense said as listed in the judgement document.
The actual sale value of the iodine was hidden of Cosayach, however, which allowed Kinariwala to pocket the difference in reported sales price and actual prices, the company’s defense said as listed in the judgement document.
The defense refers to Kinariwala as the “mastermind of the embezzlement.”
The court dismissed attempts to invalidate the judgement.
Cosayach first contacted Kinariwala as the firm had been looking to expand its distruption into Asia. Kinariwala had presented himself as “the most important iodine distributor all over the world,” Cosayach’s defense said according to the judgement.
In a statement to Kinariwala noted that “there are multiple cases before local courts between different entities with Sociedad,” adding that, “Sociedad has dragged Mr. Kinariwala based on false allegations. The recent civil case judgment is still subject to appeal before the Dubai Court of Cassation.”
Kinariwala’s statement continued: “In a related note, at the beginning of this dispute Sociedad filed a criminal case against Mr. Kinariwala in an attempt to ruin his reputation but he was acquitted from any criminal charges throughout all litigation stages. The criminal judgment has addressed all Sociedad false allegations.”
“More importantly the Ruler’s court panel of experts that was appointed by the court confirmed that Mr. Kinariwala has not committed any of the acts alleged by Sociedad.”
The court dropped the complaint against Mr. Kinariwala in another civil matter due to a lack of evidence. The Ruler’s court specialists’ report and the final criminal decision, which reflect the truth of the issue, give me confidence that the Court of Cassation will accept my appeal.
