Dubai Court Voids Luxury Car Sale After Interpol Alert

A Dubai civil court has annulled a luxury vehicle sale and ordered a refund of Dh600,000 after it emerged that the car was internationally wanted by Interpol, making the transaction legally invalid.

How the Dispute Began

The case dates back to October, when an Arab national purchased a used 2023 Mercedes-Benz from a company dealing in luxury vehicles. The total contract value was Dh670,000, with Dh200,000 paid upfront and the remaining amount financed through a bank that registered the car as collateral.

Trouble surfaced when the buyer approached Dubai’s Roads and Transport Authority to register the vehicle. Instead of approval, he received an official notification stating that the car was subject to an international Interpol alert, prohibiting its sale or registration.

Vehicle Seized, Buyer Left Without Possession

Following police verification, authorities confirmed that the vehicle had been listed under an international circular and was subsequently confiscated. As a result, the buyer lost both possession and use of the car, even as monthly loan instalments continued to be deducted by the financing bank.

The claimant told the court that he had acted in good faith, fulfilled all contractual obligations, and incurred additional expenses of Dh50,000. He sought annulment of the contract, reimbursement of all payments made, and compensation for the financial and emotional distress caused.

Court’s Ruling: Contract Unlawful From the Start

After reviewing the evidence, the court ruled that the vehicle had been stolen and was internationally wanted before the contract was signed. This meant the subject of the contract was unlawful, rendering the agreement null and void regardless of whether the seller was aware of the car’s status.

The court ordered the selling company to refund Dh600,000 to the buyer and to bear court fees and related expenses, while dismissing other compensation claims.

Why This Ruling Matters

Legal experts say the judgment reinforces the importance of due diligence in high-value transactions, particularly in jurisdictions like Dubai that attract international buyers and investors. For individuals and companies involved in business setup in dubai, the case highlights how legal compliance, asset verification and regulatory checks are critical to protecting both buyers and sellers.

The ruling also underlines Dubai’s firm legal stance on unlawful commercial transactions, strengthening confidence in the emirate’s judicial framework.