Fined for collecting booking fees

New Straits Times 9/3/2006

SHAH ALAM. Wed. - The Sessions Court today tined two housing development companies RM300, 000 or 30 months' jail for offences under the Housing Developers Act involving seven purchasers over booking fees of about RM30,000 three years ago.

Judge Azimah Omar imposed the tine after Restige Group Sdn Bhd and Menang Murni Sdn Bhd, represented by company director Bahar Abdul Latif, 30, pleaded guilty to two charges.

Bahar had not paid the tine until this evening.

Restige Group pleaded guilty to collecting RM29, 494 from six people as booking fees for the purchase of houses in what it had claimed was Taman Sri Mekar in Gombak, Selangor, when it did not have a housing development licence, between Jan 10 and Feb9, 2003.

Menang Murni pleaded guilty to issuing a brochure to Aidatul Azura Abdul Tani on Jan 17, 2003 on the sale of townhouses and double- storey terrace houses in what it had claimed was Taman Sri Mekar in Setapak, Kuala Lumpur, and having used words in the brochure that indicated a housing development business without the written approval of the Controller of Housing.

Counsel A R. Palaya, representing the two companies, asked the court to impose the minimum fine because the purchasers had recovered their booking fees after raising their case with the House Buyers Claims Tribunal, and his client was facing a financial crisis.

The Housing Developers Act provides for a fine of between RM50, 000 and RM500, 000 or imprisonment of up to five years, or both, for either offence.

Palaya also said that the companies suffered financial loss when the owner of the land on which the houses were to be built mortgaged the land without the companies' knowledge.

Deputy public prosecutor Azirul Liza Abdullah said the financial status of the companies should not be considered as companies engaged in housing development were required to have capital of at least RM250,000.

She also said that the case was of public interest because there had been cases of housing development companies' collecting booking fees with the intention of cheating the people. -Bernama