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Tougher penalties for errant developers

16/11/1998 NST By Ahmad Suffian

Kuala Lumpur, Sun - The Housing and Local Government Ministry will increase the existing penalties for offences committed by developers against unsuspecting housebuyers.

Minister Datuk Dr Ting Chew Peh said the Ministry had received several complaints from housebuyers on developers who flouted the Housing Developers Act.

"It is an offence for developers to sell houses without a valid sales and advertising permit from the Ministry and collect the 10 per cent downpayment for houses sold without first signing a sales and purchase agreement. Failure to open a development account for a new project is also an offence.

"The increased penalties are meant to deter developers who do not adhere to the existing regulations."

The present penalties for flouting any provision under the Act are a fine of RM5,000 or three months' jail or both. The new proposals will be forwarded to the Attorney-General's Chambers soon before they are submitted to the Cabinet and tabled in Parliament next year.

Speaking at the Ministry's Family Day celebrations at Taman Tasik Perdana here today, Ting said the increased penalties were necessary to safeguard the interest of housebuyers and ensure the smooth implementation of development projects.

"The Government encourages the fast implementation of housing and development projects, not only to provide affordable houses for the public but also to revive the economy.

"To achieve these objectives, the Ministry has been giving fast approvals for new housing projects to be implemented. Over the past eight months, the Ministry has approved a substantial number of housing projects."

Ting added that more staff would be recruited to assist the Ministry's  licensing controller, who was solely responsible for issuing permits and licences for the housing industry.

"With more supervisors to issue the permits and licences, it will result in faster approvals for new housing projects."

At today's event, Ting and staff from the various departments, together with their families participated in a host of games.

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