Arc @ Cyberjaya owners win suit against developer

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SHAH ALAM: The Shah Alam High Court has ruled in favour of a class-action lawsuit representing 137 unit owners of serviced apartment project The Arc @ Cyberjaya seeking the return of outstanding rentals against its developer Maju Puncakbumi Sdn Bhd.

Judge Datuk Roslan Abu Bakar delivered the decision in chambers today.

The court awarded the owners RM3.97 million being the outstanding rentals up till May 2017; 8% interest on the outstanding rentals; agreed liquidated damages; general damages, aggravated damages of RM10, exemplary damages; 5% interest on the overall damages and costs of RM15,000. It allowed an interim stay for vacant possession of the units.

The Arc @ Cyberjaya is a RM700 million freehold development, which was launched in 2011, comprising four blocks of serviced apartments with an average price of RM350,000 per unit and four blocks of office towers.

Incorporated in 2009, Maju Puncakbumi offers commercial and residential property development services. The company is based in Subang Jaya and operates as a subsidiary of Meda Inc Bhd.

Vincent Lim Chang, the lawyer representing the owners, told SunBiz that the court granted the owners summary judgment, which is a decision made on the basis of statements and evidence presented for the record without a trial.

It was reported that the owners were given an option to sign up for a guaranteed rental return (GRR) scheme, which promised a fixed rental income for up to 25 years, when they signed the sale and purchase agreement. The scheme, with an annual return rate of 8%, is offered in packages lasting six, 10 or 25 years.

On Oct 6, Meda told the stock exchange it denies promising a fixed rental income of up to 25 years to the apartment owners who initiated the class-action lawsuit against its subsidiary. Meda said according to an option agreement between owners and Maju Puncakbumi to exercise their option for a GRR, there is a fixed term of three or four years (depending on the unit), and the option to renew the agreement for up to 20 years was on Maju Puncakbumi.

In a stock exchange filing today, Meda said: “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.”

Maju Puncakbumi’s lawyer, when met at the courthouse, claimed that some of the owners have seen the developer and settled their disputes.


Read the original story on: TheSunDaily.My