Ministry gets tips on duty to buyers

 01/11/2003 The Sun By Arion Yeow

Kuala Lumpur: The House Buyers Association has asked the Housing and Local Government Ministry to take pro-active steps to safeguard the interests of Sentul Indah house buyers.

The Sentul Indah housing project by Homeng Realty Sdn Bhd was classified as abandoned in 2000 but was re-launched and marketed to new house buyers last year.

Having seen no signs of activity at the construction site, the first and second batch of purchasers want the ministry to take action against the developer.

Homeng Realty director Toh Ah Leong said the project has not been abandoned but is awaiting a price quotation from the contractor.

In a statement to theSun on Wednesday, the association suggested that the ministry take the following steps:

• blacklist the developer;

• prosecute the developer for breaching the terms of the sale and purchase agreement by failing to deliver the completed units within the stipulated 36 months;

• request that Syarikat Perumahan Negara intervene by reviving the project if it is feasible;

• the minister direct the land office to lodge a registrar's caveat on the project's master title to prohibit the developer and/or proprietor (s) from disposing and/or dealing with the titles; and

• investigate the developer for any wrongdoing especially with regard to the Housing Development Account.

The association also suggested that the ministry invoke the power of the minister under Section 11 of the Housing Development (Control and Licensing) Act to:

• direct the developer to take the necessary steps to rectify the situation;

• present a petition to the High Court to wind-up the developer's business; or

• with the concurrence of the Finance Minister , direct another company to take control of the developer's business.

The project consists of 374 apartment units and 19 shoplot units, first launched in 1997 and sold to 102 purchasers. In was due to be completed in December 1999 but was classified as abandoned in 2000.

At a meeting on Nov 21 last year, the ministry renewed the developer's licence despite an earlier promise not to do so and instructed the developer to return the purchaser's money by January, which it has not yet done.

The project was re-launched and property sold to 42 new buyers.

There is no work in progress on the project, which is due to be completed in 2005.

A check on the ministry's website indicates that the project has only 52 purchasers as opposed to 144 (102 initial buyers and 42 new buyers).