Paying six times more for 30 years
The Malay Mail 14/2/2006 By Elycia Lee

KUALA LUMPUR, Feb 14
For 30 years, residents in Jalan Paoh and Jalan Gajus paid six times more than they should in quit rent.

The residents of three blocks of flats, built in the ’80s, have unwittingly paid the commercial rate of RM3.10 per sq metre instead of the residential rate of 65 sen per sq metre.

The residents only realised they were paying the wrong rate when they received a letter informing them of a rate increase.

They found out that the local authorities had been overcharging them when they wanted to appeal against the rate hike.

It all began when the residents were informed that their quit rent would be increased by nearly 80 per cent from January.

Residents were shocked when they received the demand letter because it was a huge increase.

It was only when their MP, Tan Kok Wai, checked with the Land and Mines office on their behalf that they discovered that the property is classified as ‘commercial development’ because the developer did not bother to change the status of the land use.

As far as the local authorities are concerned, the flats are commercial premises.

"I want to bring this up because there may be others who are not aware that they are paying commercial quit rent like the residents here," said Tan, who is Cheras MP.

Residents of the 80 units involved said they need help to get their money back and to get their residential status.

"We want to change our land status from commercial to residential," said resident Wong Kam Meng, 74.

Wong, who has been staying at the flats for 30 years, said he did not know he was being overcharged.

Another resident said they are relying on their MP for help.

"We are depending on our MP to appeal on our behalf," said Chan Chee Wai, 47.

Another resident, Ho Lai Hing, 45, said: "We are also hoping to get a refund."

The Federal Territory Kuala Lumpur Land and Mines Office assistant director Nasir Mamat said the residents should apply to get the status of their flats.

He said the residents should also appeal to get a refund from the Federal Territories Land Executive Committee.

"There are similar cases and some successfully got their refund," said Nasir.

Residents of the three blocks of flats have been paying a total of RM9,000 per year for the last 30 years when they should have only paid RM2,267 per year.

An official at the Land and Mines office said the residents had been charged a reduced commercial rate quit rent for the last few years but the discount ended this year.

"However, as this is a new year, the rates are back to normal. Hence, the seemingly hefty increase.

"If they want to have the bill reduced, they will have to appeal again," said the spokesman.