The Shah Alam High Court has ordered developer Maju Puncakbumi to compensate 137 buyers of serviced apartments at The Arc @ Cyberjaya after the company violated the agreed guaranteed rental return (GRR) scheme.
On Thursday (9 November), Judge Datuk Roslan Abu Bakar awarded the plaintiffs with RM3.97 million as outstanding rentals until May 2017, eight percent interest on the aforementioned amount, general damages, liquidated damages, exemplary damages, aggravated damages of RM10 and five percent interest on total damages.
The magistrate also ordered the developer to shoulder the plaintiff’s cost of RM15,000, and granted an interim stay for vacant possession of the serviced residences.
According to the plaintiffs’ attorney Vincent Lim Chang, the award was a summary judgment, meaning the decision was solely based on the evidence and statements submitted to the court without undergoing a trial.
Meanwhile, the RM700 million Arc freehold project comprises four office towers and four blocks of serviced apartments, with the latter selling for RM350,000 apiece on average.
It was developed by Maju Puncakbumi, a residential and commercial property developer controlled by parent firm Meda Inc.
Based on media reports, upon inking the sale and purchase agreement, the serviced apartment buyers were provided with an option to avail of a GRR scheme, whereby Maju Puncakbumi promised to give returns of eight percent per annum for six, 10 or 25 years.
But in a Bursa Malaysia filing last month, Meda refuted that it had granted fixed rental income of up to 25 years. It argued that the terms were fixed to three or four years depending on the unit type. Also, the option to renew the deal for up to two decades was solely at the discretion of Maju Puncakbumi.
Furthermore, a recent filing on Thursday (9 November) show that Meda plans to appeal the ruling.
“Our solicitors advised that we have a good case to appeal in this matter. Therefore, we have given instructions to our solicitors to appeal this matter to the Court of Appeal.”
The defendant’s attorney also claimed that some of the plaintiffs have agreed to settle with Maju Puncakbumi.
Image sourced from Inside Higher Ed.
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
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