Housing firms fined
09/03/2006 The Star

SHAH ALAM: Two housing development companies were fined RM150,000 or, in default, fifteen months’ jail each for the director by the Sessions Court here after their director pleaded guilty to contravening the Housing Development (Control and Licensing) Act 1966.

As he could not pay the fine, Bahar Abdul Latif was handcuffed and taken away to the Section 11, Shah Alam, police station after Judge Azimah Omar turned down defence counsel A.R. Palaya’s request for the fine to be paid in instalments.

Bahar, who is a director of Menang Murni Sdn Bhd and Restige Group Sdn Bhd, pleaded guilty to illegally distributing pamphlets advertising the sale of houses and collecting advance payments from purchasers.
The two companies were brought to court by the Housing and Local Government Ministry.

Bahar admitted that Menang Murni had on Jan 17, 2003, given a brochure to Aidatul Azura Abdul Rani advertising the sale of townhouses and double-storey houses in a housing development project purportedly known as Taman Sri Mekar, Setapak.

The sale of the houses was advertised in the brochures without the written consent of the ministry’s Controller of Housing.

He also admitted that Restige Group had collected advance payments amounting to almost RM29,500 from Azman Mohd Sagap, Jaleezah Idris, Mona Asifah Abdullah, Mat Zaki Sanusi, Hasfaizol Hamsi and Mohd Isnizam Saaya, who purchased houses in the project.

In mitigation, Palaya said the project could not take off because both companies were facing financial problems.

He added that Bahar had saved the court a lot of time by pleading guilty.

Meanwhile, Deputy Public Prosecutor Azirul Liza Abdullah said the defendants should not have proceeded without prior permission from the relevant authority.

Azirul Liza said the argument that the companies did not have the money to start the project was moot as it was a pre-requisite for housing developers to be of sound financial standing.

She added that the Housing Development (Control and Licensing) Act 1966 also required developers to have not less than RM250,000 in order for the Housing Developers Licence to be approved.

Azirul Liza requested the court to impose a deterrent sentence given that there were elements of fraud in the offence.