More than 1,500 frustrated buyers of Majestic Heights' Phase I
units have started legal action to stop the developer from winding up the
company before it completes the project.
The Ad-Hoc Committee for Taman Terubong Indah (Majestic Heights) Phase
1 Purchasers filed a notice two weeks ago through their lawyers to oppose
the winding-up petition filed by creditors of Majestic Heights at the
Penang High Court.
Committee executive vice-chairman Chang Seng Liang said yesterday if
the developer wound up or was declared bankrupt, the project would likely
be abandoned and had to be taken over by the Government.
"Should this happen, the waiting period of over 10 years for the
revitalisation of the project is rather painful as we still need to
service bank loans and rental of premises.
"Buyers will need to pay additional money to a new developer to
complete the project. If only one buyer refuses to pay the amount, the
project will come to a standstill," he said.
The Phase I low medium-cost project, launched in 1994 and was due to be
completed in 1997, comprises nine blocks of 1,557 units which were sold
out for a total sum of RM118mil.
Chang also said the Certificate of Vacant Possession for the units had
been wrongly issued.
"Due to the improper certification, the banks concerned had negligently
released 100% disbursement to the developer but till today we have yet to
obtain the Certificate of Fitness (CF)," he added.
A meet-the-purchasers session held at Lee Association in Burmah Road
yesterday to register buyers for legal representation attracted a large
turnout of over 500 people.
Paya Terubong assemblyman Dr Loh Hock Hun and several committee members
were present to field questions from buyers who were briefed on the latest
development and next course of action.
The committee is collecting RM100 from every unit buyer to pay legal
fees, administrative expenses and for other contingencies.