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Highrise buyers act to stop winding-up
10/08/1999 The Star

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.

 

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