Developer gets fresh ultimatum

23/05/2001 The Star

The Housing and Local Government Ministry has given Majestic Heights Sdn Bhd, developer of the problematic Taman Terubong Indah project in Paya Terubong, up to November to complete the first two phases of the project.

It is learnt that the developer has been instructed in March to complete and hand over the units under Section 11 of the Housing Developers (Control and Licensing) Act 1966.

The developer subsequently requested deferment of full implementation of Section 11 of the Act, pending approval from the Penang Municipal Council of an application to construct another 7,000-odd low-medium-cost apartments and shoplots at the site.

However, according to an officer at the ministry's enforcement unit, the appeal was rejected earlier this month.

"Approval of the additional units has to do with the state and has no connection with our instructions," he said yesterday.

Phase 1 of the project comprises 1,557 units and Phase 2A, 370 units.

The other two phases, 2B and 3A, involve 542 and 569 units respectively.

The officer said the ministry would take follow-up action in accordance with the Act should the developer fail to meet the deadline.

Asked what action would be taken, he said: "There are several alternatives and they are not finalised yet. We are still in the discussion process."

It is understood that another company has offered to revive the project on condition that approval be given for construction of the additional 7,000-odd units.

Chief Minister Tan Sri Dr Koh Tsu Koon had said in January that the state government was studying the salvage scheme proposed.

The ad-hoc committees for purchasers, however, believe that buyers will be better served completing the project on their own at a cost of RM10,000 each or more.

A forum will be held on Sunday at 2pm at the Komtar Geodesic Dome for purchasers from all phases.