Firm may sue over 400 ‘silent’ buyers

31/03/2003 The Star BY SYLVIA LOOI

The liquidator of Majestic Heights Sdn Bhd is contemplating legal action against purchasers who failed to pay RM7,500 each to finance the revival of Taman Terubong Indus (Majestic Heights) Phase 1.

Deloitte Kassim Chan corporate reorganisation group executive director Chu Siew Koon said that of the 1,557 purchasers, 760 had paid up while 389 were in the midst of applying for loans.

“However, 408 still refuse to come forward and pay,” he told a purchasers forum yesterday.

This, he said, is holding up the issuance of certificate of fitness (CF) as clearing letters cannot be obtained from the Fire and Rescue Department, Penang Water Supply Corporation (PBA) and Indah Water Kon-sortium (IWK) due to payment problems.

Appealing to the 'silent' purchasers to come forward and pay up, Chu urged them to dispel the notion that they should only pay after the CF was obtained.

Chu expressed confidence that if all funds were collected, the CF could be obtained in two months.

He added that besides legal action, the purchasers would not be able to sell their units in the future because legally they do not own them.

He also said that banks would lift the moratorium and proceed with legal action against these purchasers.

Committee chairman Lim Beng Hong said as the contractor Wira Properties Management Sdn Bhd had not been paid the balance of the amount owed to them, they could not pay the sub-contractors causing the latter to hold back their work.

Paya Terubong assemblyman Datuk Dr Loh Hock Hun reiterated that once all clearing letters from 13 departments are on his hand, he would proceed to apply for the CF.

“I appeal to the 408 purchasers that if they face any problems, to come forward and see us because your silence is affecting other people,” he said.

Phase I is a low medium-cost apartment project that was abandoned during the economic crisis in 1997 when the original developer ran into financial problems.

Against all odds, the purchasers got together to set up a committee to revive the project, making it the first successful attempt of its kind in the country.

Launched in 1995, the four phases of Majestic Heights project, comprising 2,955 housing units, 55 shop lots and 22 light industrial units, was the country's largest single abandoned housing project.