Developer to show cause over hefty 'forced' charges
Susan LoonePublished: Feb 14, 2014 4:59 AM | Updated: Feb 14, 2014 5:50 AM
The Penang government has issued a Bukit Gambier developer a show cause letter to solicit an explanation as to why low-medium cost home buyers are allegedly "forced" to pay for additional sum their houses.
The Penang government has issued a Bukit Gambier developer a show cause letter to solicit an explanation as to why low-medium cost home buyers are allegedly "forced" to pay for additional sum their houses.
State housing executive councillor Jagdeep Singh Deo (left) expressed unhappiness that although there had been several meetings between the developer of Centrio Avenue and buyers, the problem where the latter are asked to pay a whopping RM88,500 more remains unresolved.
The payment is reportedly for the housing flat’s car park and renovation costs.
"At every meeting, the developers agree to obey our ruling and not force the buyers to accept their packages.
"I am totally unsatisfied that after two months of meetings, many cases are not resolved yet," Jagdeep said at a press conference today.
He was responding to the plea for help by a group of home buyers who appeared at the Penang government complex at Komtar yesterday, to hand in a memorandum on their plight.
During the incident, Mohd Fairus Ilias,33, even went on his knees to beg for Chief Minister Lim Guan Eng's help.
The buyers claimed to have bought units sized 650 sq ft - costing about RM72,500 each - at a 31-storey, 780-unit apartments in Bukit Gambier, but later received letters from the developer telling them to pay an extra RM28,500 for a parking lot and RM60,00 for a renovation package, bringing the cost of their investment to RM168,000.
You cannot force buyers to pay
Jagdeep said the group also attended the meetings with the developer, adding that the state government were aware of what transpired during the sessions held in December and two meetings last month - on Jan 13 and Jan 24.
"It is not like we are sitting down here and doing nothing, I have been calling the developer for updates," Jagdeep said.
"We will not tolerate (such action by) any developer no matter how big they are.”
Jagdeep said the state's priority is to ensure that developers provide low-medium houses for those who are in need of such homes.
He added that the state will not compromise with or tolerate developers who do not comply to the 30 percent requirement to provide such units.
In the Centrio Avenue case or other similar cases, Jagdeep said the developer can propose a renovation package but cannot force buyers to take it if they do not agree.
"We have asked the buyers who face this problem to meet with the developers with state housing committee representatives to resolve their problems," he said.
State housing executive councillor Jagdeep Singh Deo (left) expressed unhappiness that although there had been several meetings between the developer of Centrio Avenue and buyers, the problem where the latter are asked to pay a whopping RM88,500 more remains unresolved.The payment is reportedly for the housing flat’s car park and renovation costs.
"At every meeting, the developers agree to obey our ruling and not force the buyers to accept their packages.
"I am totally unsatisfied that after two months of meetings, many cases are not resolved yet," Jagdeep said at a press conference today.
He was responding to the plea for help by a group of home buyers who appeared at the Penang government complex at Komtar yesterday, to hand in a memorandum on their plight.
During the incident, Mohd Fairus Ilias,33, even went on his knees to beg for Chief Minister Lim Guan Eng's help.
The buyers claimed to have bought units sized 650 sq ft - costing about RM72,500 each - at a 31-storey, 780-unit apartments in Bukit Gambier, but later received letters from the developer telling them to pay an extra RM28,500 for a parking lot and RM60,00 for a renovation package, bringing the cost of their investment to RM168,000.
You cannot force buyers to pay
Jagdeep said the group also attended the meetings with the developer, adding that the state government were aware of what transpired during the sessions held in December and two meetings last month - on Jan 13 and Jan 24.
"It is not like we are sitting down here and doing nothing, I have been calling the developer for updates," Jagdeep said.
"We will not tolerate (such action by) any developer no matter how big they are.”
Jagdeep said the state's priority is to ensure that developers provide low-medium houses for those who are in need of such homes.
He added that the state will not compromise with or tolerate developers who do not comply to the 30 percent requirement to provide such units.
In the Centrio Avenue case or other similar cases, Jagdeep said the developer can propose a renovation package but cannot force buyers to take it if they do not agree.
"We have asked the buyers who face this problem to meet with the developers with state housing committee representatives to resolve their problems," he said.
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