Viceroy Hotel Group, headquartered in Los Angeles, yesterday filed legal claims in California, Case No. BC674956, arising out of the unlawful ouster of Viceroy from its newly opened Dubai property. The claims seek redress from Dubai-based businessman Kabir Mulchandani, and entities he controls, for damage they have caused to Viceroy and the Viceroy brand.
The cross-complaint details Mulchandani's decision to leverage Viceroy's hotel management expertise in opening the hotel, which he followed by evicting Viceroy from its role as exclusive hotel manager. It further details how he subsequently created a false record of accounting-related accusations in an attempt to both justify Viceroy's eviction after the fact and extort a settlement. The allegations against Mulchandani include fraud, extortion, conversion, and unfair business practices.
On June 22, 2017, a court of the Dubai International Financial Centre issued an injunction against Mulchandani in a ruling restoring Viceroy's role as the hotel manager. To date, Mulchandani and the entities he controls have ignored the court order.
"Viceroy was wrongfully ousted from its role as the exclusive manager of the Hotel on Palm Jumeirah in Dubai by Kabir Mulchandani," Bill Walshe, the CEO of the Los Angeles-based Viceroy Hotel Group says. "Having filed a baseless suit in Los Angeles, Mulchandani and the companies he controls will now be forced to answer for their wrongdoing in Los Angeles and the UAE."
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