695 rogue developers detected

The Star 13/10/2005 BY DEVID RAJAH

KUALA LUMPUR: Close to 700 rogue housing developers, including 16 bogus builders, have been detected in a nationwide crackdown by the Housing and Local Government Ministry that began two years ago.

To date, 96 – including 16 bogus or unlicensed developers who opened up offices and project sites to cheat 37 house buyers of their deposits – are facing court action for various offences.

Thirty-two of those facing court action did not comply with awards and decisions of the Home Buyers Claims Tribunal, and 80 other developers are being investigated for the same offence.

The ministry has also slapped 519 developers with compound fines for failing to submit housing progress reports twice yearly, for violating advertisement regulations and other compoundable offences.

Recently, one of the 16 bogus developers challenged a house buyer to lodge complaints with the ministry despite knowing scores of developers are facing court action and that some had already been convicted.

“When a house buyer confronted this unlicensed developer the latter apparently claimed that the ministry could not do anything to him,” Dr G. Parameswaran, director of the Monitoring and Enforcement Division under the Housing and Local Government Ministry, told The Star.

“When this developer was detected, the company was operating from Gombak. And when its cover was blown the developer went into hiding for a while,” he said.

“A year later it was found to be operating from Klang, and now we have received reports that it has moved to Seremban.”

Parameswaran said the division also found that some unlicensed developers hired lawyers to draft sale and purchase agreements to convince house buyers that they were bona fide developers.

It is believed that the unlicensed developers, who often move offices between states and districts, could have cheated hundreds of unsuspecting buyers, but only 37 buyers have come forward to expose them.

The division also found that in most cases the unlicensed developers would not start housing schemes except for a handful who would commence, then abandon, work.

“Most of the unlicensed developers were concentrated in the Klang Valley, while the licensed developers who had flouted the laws were from all over the country,” Parameswaran said.

“The enforcement division will strictly enforce the law to protect house buyers’ interests.”

He also said that the minister, Datuk Seri Ong Ka Ting, had pushed for laws to be tightened and strictly enforced to prevent house buyers from falling victim to irresponsible developers.

Parameswaran added that the division would not show any mercy to developers who flouted the Housing Development (Control and Licensing) Act 1966 and Regulations (Amendments) that took effect on Dec 1, 2002.

He said the action against the 695 developers since 2003 till September this year should serve as a warning to would-be offenders. There are currently 4,500 licensed developers in the country.

Parameswaran urged potential house buyers to check with the ministry.

Consumers who want to lodge complaints can contact the ministry (tel: 03-2094 7033 / fax: 03-2092 5409) or go to the ministry’s website www.kpkt.gov.my.