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
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
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
“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.