Impounded cars in Dubai to be auctioned in 3 months

(MENAFN- Khaleej Times)Thousands of impounded cars including luxury vehicles like Ferrari BMW Mercedes Benz and high-end sports cars valued at millions of dirhams have been piling up at police compounds waiting to be auctioned.

However Law No 23 for the year 2015 on the disposition of seized vehicles in the emirate of Dubai issued by His Highness Shaikh Mohammed bin Rashid Al Maktoum Vice-President and Prime Minister of the UAE and Ruler of Dubai will reduce the number of seized vehicles in impoundment areas and ensure that cars are auctioned earlier resulting in better prices.

According to the new law impounded vehicles will be auctioned after three months if the owner of the vehicle has not contacted the department concerned and paid his dues. Earlier the period was six months. Also the money from the auction will be deposited in an account for three years during which time the owner of the vehicle can claim it after deduction of fines fees and penalties. In case nobody claims the money it goes to the government.

Also vehicle owners will be given a 30-day notice period before the car is auctioned.

Major-General Khamis Mattar Al Mazeina Commander-in-Chief of Dubai Police praised the new law which replaces Law No 34 passed in 2008 on the disposition of seized vehicles.

He said the new law will make the Dubai Police the central authority in the issue of impounded vehicles in coordination with the authorities concerned. It also gives the police the right to dispose of vehicles impounded by the Dubai Police after three months from the date of the seizure. The police however may not impose any fee or fine on the impounded vehicle that will be disposed of in accordance with the provisions of this law after the expiration of this period.

Vehicle owners will be given a 30-day notice period before the car is auctioned. He stressed the Dubai Police will preserve the right of car owners by maintaining the market value of the vehicle.

He added that the new law is comprehensive and gives car owners the right to approach the departments concerned pay all penalties and claim their cars before the auction.

Pilot Major-General Anas Al Matroushi director of operations for transport and rescue of the Dubai Police said the new law will unify government procedures regarding disposition of seized vehicles. Earlier each government department was using a different procedures. But now the money from the auction will be deposited in an account for three years during which time the owner of the vehicle can claim it after deduction of fines fees and penalties. "In case nobody claims the money it goes to the government" he added.

Major-General Al Matroushi added that leaving the vehicles in the open for six months will reduce its market value.

He noted that the police have confiscated cars valued between Dh100000 and Dh200000 but they were often sold at much lesser prices due to delays. The new law will help the government get its dues he added.

Reasons for impoundment

Major-General Al Matroushi said each government department has a different reason for seizing cars. According to the law the Dubai Municipality has the right to seize cars if they are found abandoned in public places.

The Dubai traffic police seizes hundreds of cars for a range of violations like speeding reckless driving jumping signals after maximising black points not renewing registration and for accumulating traffic fines.

While the RTA seizes cars found abandoned in parking lots the Dubai Courts seizes cars of people who fall in debt.

Auctions

Major-General Al Matroushi said impounded cars that are auctioned include new and used cars and even heavy trucks. Several luxury and high-end sports cars were also dumped during the economic recession and have been auctioned.

Upcoming auction

The next auction will be held by the Dubai Police on September 11 he said. A one-month grace period has been given to vehicles owners to pay their fines and retrieve their cars. He added that 456 cars will be sold during the up-coming auction.

Auctions are held every month he added.

He said 634 cars were auctioned last month at a total value of Dh4747000.

As per law the Dubai Police advertise the auction in both Arabic and English media and on its website.

Major-General Al Matroushi said the police often contacts owners whose vehicles have been impounded and asks them to reclaim their cars after paying fines. He called up on insurance companies banks and departments concerned to speed up the necessary procedures to help clients claim their impounded vehicles.

Amira Agarib