Developer says it paid in full for late delivery

Developer says it paid in full for late delivery, not 20% less
The Sun 6/7/2004

PETALING JAYA: Developer Fadason Holdings (M) Sdn Bhd yesterday refuted allegations that it paid buyers of low-medium- cost houses in its Permata Fadason project in Kepong 20% less than what it should have given them for late deliver.

Finance manager D. Ramalingam said 294 buyers had been paid the full amount according to the sales and purchase agreement, if Fadason failed to complete the houses within three years. "Our formula for calculation is 10% of the purchase price (RM60, 000) divided by 365 days and multiplied by the number of days we were late.

"Only 365 house buyers claimed for late delivery at the House Buyers Tribunal, and it's not true that we paid them less than what they claimed," he said.

The claims filed by the buyers at the tribunal ranged from RM1,000 to RM4,000.

"The remaining 71 cases at the tribunal were handed out awards and out of this number, only 42 were taken to court for the judicial review.

"As for the 29 others, 22 were paid what was due to them, three awards have yet to reach the compliance date and the remaining four have yet to pay us back that was ordered by the tribunal based on our counter-claims against them for outstanding payments," Ramalingam said, adding that other buyers had settled with the company even before seeking redress at the tribunal.

On Monday; Kepong MCA division public services and complaints bureau chief Yee Poh Ping was quoted as saying that about 570 house buyers had submitted claims to the Tribunal and a majority withdrew due to lack of confidence in the process of the tribunal. Yee, who held a press conference to voice' the buyers' concern for their lack of representation at the High Court, said those who withdrew opted for offers by Fadason which was 20% less than what they had claim.