31/07/2008 The Star By K. Kasturi Dewi

DEVELOPERS who neglect their responsibility in maintaining a property in accordance with the sales and purchase agreement would have to face severe consequences including being blacklisted by the state.

Deputy Chief Minister II Dr P. Ramasamy said blacklisting a developer would however be the last resort taken by the state if all other attempts to get the developer to fulfil the responsibilities failed.

Speaking to reporters after receiving a memorandum by a group of Taman Perai Indah medium-cost flat owners at the State Assembly building on Monday, he said developers and residents must first resolve their problems.

“If this fails, then the state would see how to put pressure on the developer, including the possibility of blacklisting to resolve the issues.”

Dr Ramasamy said he would also invite the Seberang Prai Municipal Council for a meeting with the developer and the residents.

The residents claimed in the memorandum that developer Piala Mutiara Sdn Bhd completed the project in 1999 and the residents began moving into their units between 2001 and 2002.

Businessman Rahman Salim, 36, who was present to submit the memorandum, said the company’s managing director M. Kajendaran had to date failed to meet the residents to discuss the formation of a joint-management body.

Another resident Gernam Singh, 67, said the market value of the units which were bought at between RM80,000 and RM90,000 each had depreciated by about 50% in the past 10 years.

”The whole place resembles a slum, the flat looks run down and is stinking and the common areas such as the corridors are filthy.

”There are no security guards and out of the two lifts, one has been out of order for about eight years while the other one suffers frequent breakdowns,’’ he said.

When contacted Kajendaran said only about 40% of the unit owners were paying their maintenance charges.

”Some of them had not even paid from the day they moved in,’’ he said.

Kajendaran added that none of the residents had written to object about the increase in the maintenance payment from RM50 to RM70 although they were given 14 days grace period to do so.

”The RM50 maintenance payment was stipulated in the supplementary agreement but due to increasing costs after the completion of the project, the developer had to increase the charges,’’ he said.