Kuala Lumpur, Sun -
The Housing and Local Government Ministry will increase the existing penalties
for offences committed by developers against unsuspecting housebuyers.
Minister Datuk Dr Ting
Chew Peh said the Ministry had received several complaints from housebuyers
on developers who flouted the Housing Developers Act.
"It is an offence for
developers to sell houses without a valid sales and advertising permit from
the Ministry and collect the 10 per cent downpayment for houses sold without
first signing a sales and purchase agreement. Failure to open a development
account for a new project is also an offence.
"The increased penalties
are meant to deter developers who do not adhere to the existing regulations."
The present penalties
for flouting any provision under the Act are a fine of RM5,000 or three months'
jail or both. The new proposals will be forwarded to the Attorney-General's
Chambers soon before they are submitted to the Cabinet and tabled in Parliament
next year.
Speaking at the Ministry's
Family Day celebrations at Taman Tasik Perdana here today, Ting said the increased
penalties were necessary to safeguard the interest of housebuyers and ensure
the smooth implementation of development projects.
"The Government encourages
the fast implementation of housing and development projects, not only to provide
affordable houses for the public but also to revive the economy.
"To achieve these objectives,
the Ministry has been giving fast approvals for new housing projects to be
implemented. Over the past eight months, the Ministry has approved a substantial
number of housing projects."
Ting added that more
staff would be recruited to assist the Ministry's
licensing controller, who was solely responsible for issuing permits
and licences for the housing industry.
"With more supervisors
to issue the permits and licences, it will result in faster approvals for
new housing projects."
At today's event, Ting
and staff from the various departments, together with their families participated
in a host of games.