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Wind up developers buyers tell govt
The Sun 14/10/2003

PETALING JAYA: A group of house buyers want the Housing and Local Government Ministry to wind up Lembah Beringin Sdn Bhd (LBSB) for abandoning the Lembah Beringin housing project.

Most of the house buyers signed sales and purchase agreements (S&Ps) with LBSB, a subsidiary of Land & General Bhd (L&G), in 1996.

The project, comprising about 900 units of single- and double-storey terrace houses in four phases, was scheduled for completion in 1998.

After five years of waiting and several unsuccessful attempts to resolve the matter, the house buyers want the ministry to invoke its powers under section 11 of the Housing Development (Control & Licensing) Act 1966 (Act 118) & Regulations to wind up the developer.

The powers of that section have never been used before.

"We have been servicing bank loans and making progressive payments to the developer for five years.

"The developer has not been able to come up with an acceptable proposal to rehabilitate the stalled project. We want our money back," said Lembah Beringin house buyers pro tem committee chairman Gevananthamm Marimuthu.

Gevanantham, who spoke on behalf of about 60 house buyers, said previous attempts to resolve the matter were unsuccessful.

In 2001, the house buyers formed the committee to seek help from stateexco member and Kuala Kubu state assemblyman Datuk Ch’ng Toh Eng, but Ch'ng was unable to resolve the matter.

Another meeting on Oct 7, mediated by Deputy Housing and Local Government Minister Datuk Peter Chin, also failed to resolve the matter.

Contacted yesterday; LBSB chief operating officer Muhd Najib Mohd Rawi admitted that the project has been abandoned.

He said about 60% to 70% of the units were sold before the project stalled during the 1997 financial Crisis.

He said some buyers, withdrew and some stopped making the progressive payments, so the company could not pay the contractors, Neither did it have enough internal funds to continue with the project.

"We tried to revive the project several times in the past but now the ministry has proposed that Syarikat Perumahan Negara and Keyvale Consolidated Sdn Bhd revive the project," Muhd Najib said.

Gevanantham said the buyers rejected the proposal because they were no longer interested in the project.


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