Tall apartment towers rise behind yachts moored at Dubai Marina in the United Arab Emirates on Friday, Aug. 25, 2023. (Bloomberg)
A woman in British Columbia has won almost $1 million in damages after losing most of her life savings in a scam involving a fake property development in Dubai. The court heard that she trusted a couple who promised high returns on her investment but delivered nothing.
Justice Richard Fowler ruled in her favour earlier this year. The decision became public this week.
How it started
Manjeet Kaur Sandhu met Meera and Kuldeep Virk through a family connection in early 2016. Meera convinced her to invest $200,000 in a Dubai construction project. She promised the money would be safe, even swearing before the Sikh holy book, Guru Granth Sahib. She claimed the investment would be secured by a second mortgage.
Soon after, Meera said more funds were needed to complete the project. Sandhu provided another $200,000, reassured by Meera’s polished appearance and spiritual claims. She was given promissory notes with the promise of repayment plus 10% interest.
More money, more promises
Three months later, Sandhu handed over $100,000 more. Three months after that, she gave another $100,000. Each time, Meera promised the project was nearly finished. She continued to reassure Sandhu, urging her not to worry.
By May 2017, more than a year had passed since the first payment. Meera visited Sandhu at her home, again insisting everything was fine.
No repayment, mounting stress
Years passed without a single repayment. Sandhu became anxious and depressed. She could not sleep, felt constant stress, and blamed herself for trusting the couple. She even sold her home and bought a smaller one to recover financially.
She filed her civil claim two years after the last payment. Several other people linked to the scheme settled with her before the trial, but the Virks refused to take part in the proceedings.
The judgment
Justice Fowler ruled that the Virks committed civil fraud and breached the loan agreement. He awarded Sandhu damages equal to her $600,000 loss plus interest, initially totalling over $1.14 million. This amount was reduced to $811,397.26 after accounting for earlier settlements.
The court also awarded $75,000 in aggravated damages for the humiliation and emotional harm caused, as well as $90,000 in punitive damages to punish the Virks’ conduct. Fowler noted that the Virks exploited Sandhu’s trust and faith for over a year.
In total, Sandhu was awarded $976,397.26 in damages, plus $20,000 in legal costs.
Although the police were informed, no criminal charges were ever filed. The judge stressed the need for strong financial penalties to deter such schemes.
