Arif Naqvi, the Karachi-born founder of Abraaj Group, is facing a criminal complaint in Sharjah, United Arab Emirates (UAE) against two cheques that bounced in early May. According to the Financial Times, Naqvi could face a custodial sentence in the UAE if he does not settle the debt. As per the report, an arrest warrant was also issued by the prosecutor against Naqvi and his colleague Muhammad Rafique Lakhani for writing a 'cheque without the necessary funds' for a total claim amounting to AED177m ($48.2m). Bounced cheques for amounts in excess of AED200,000 remain a criminal offence in the UAE and a conviction could mean a possible jail sentence for Naqvi. “The bounced cheque was used as partial security for loans estimated at $300m made to Abraaj by Hamid Jafar, founder of Sharjah’s Crescent Group,” stated the FT report citing its sources. “[Naqvi] is now wanted on criminal charges in the UAE and is refusing to come back and answer to them,” stated the source. Meanwhile, Habib al-Mulla, Mr Naqvi’s lawyer, has denied the allegations. “The loan was given and the cheques were issued in a genuine commercial transaction and should be dealt with in a commercial manner,” he said. “Offers for payment and adequate securities were provided.” “We won’t yield to pressure, though there is serious discussion on repayment and we can come up with a solution that is satisfactory to all parties involved,” added Mulla. Earlier, Abraaj filed for provisional liquidation and is using courts in the Cayman Islands to implement a restructuring plan for its estimated $1 billion in debts, reported Arabian Business.