Israeli Real Estate Queen Under House Arrest Strives to Avoid Firm’s Liquidation

At a court hearing, Inbal Or showed up late and was rebuked for her outbursts.

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Inbal Or
Inbal OrCredit: Eyal Toueg
Yasmin Gueta
Jasmin Gueta

Embattled real estate developer Inbal Or was given one day to make good on a 1-million-shekel ($259,000) payment during a court hearing Wednesday calling for the liquidation of her business group.

Tel Aviv District Court Judge Eitan Orenstein gave Or one day to pay Global, from which her company had bought land.

During the hearing, the judge criticized Or for her outbursts and threatened to throw her out of the room.

Or is currently under house arrest after she and her company’s chief financial officer, Dror Giladi, were detained after a Tax Authority investigation into possible tax irregularities worth tens of millions of shekels.

The hearing included a representative of Bank Mizrahi-Tefahot, which Or’s group Or City Real Estate owes 10 million shekels. Representatives of the Tax Authority were also present. They told the judge that Or owed 300,000 shekels in income tax, 800,000 shekels in land purchase tax and 1.7 million shekels in betterment tax.

Or showed up late, accompanied by attorneys Jacob Weinroth and Amit Hadad, whom she had hired the previous evening, as well as attorney Dan Novhari.

Weinroth argued that sending Or’s company into liquidation or a stay of proceedings was drastic and unjustified, and submitted documents arguing that Or City was financially sound.

The company has 57 million shekels in equity, and 12 projects in the works, Novhari said.

Or’s team also submitted a statement from Global stating that Or City was meeting its obligations under their contract, which included a 1-million-shekel payment made Wednesday.

The Mizrahi representative said Or had 10 million shekels in credit, and that the bank would demand that it be paid immediately.

For the most part, Or does not sell actual apartments, she organizes purchasing groups and receives a percentage. Under a purchasing group, the buyers pool their resources in order to put up an apartment building. The suspicions against her have nothing to do with her clients, just the extent to which taxes were paid on the company’s income.

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