An aerial view of the abandoned Plaza Rakyat project in Jalan Pudu. – filepic
SEVERAL Plaza Rakyat shoplot purchasers are still up in arms as they claim they have not received enough compensation after two decades of hardship.
Approximately 104 of the 211 buyers have been issued offer letters by the current developer Profit Consortium Sdn Bhd, and 85% of them have accepted.
Among those holding out for more is buyer Steven Yong.
The now 78-year-old said he put his life savings into paying the RM120,000 deposit for a lot at the proposed Plaza Rakyat development that should have been completed by 2007.
“About five years ago, another developer had come in with the promise of returning our lot after taking over and finishing the project.
“They would have completed the development by now, but why did the Federal Territories Ministry and Kuala Lumpur City Hall (DBKL) not approve the proposal?” he asked.
On Oct 30, 2015, developer Profit Consortium signed a sales-and-purchase agreement with Kuala Lumpur City Hall to take over the 6.2ha site for RM740mil.
At the time, it was reported that Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor said the new developer would resolve compensation issues with all the buyers, with RM40mil allocated from the agreed upon RM740mil.
“Now about 50 of the buyers have already passed away; what will happen to their share?” Yong queried.
“In addition, in the sales-and-purchase agreement they signed with Plaza Rakyat Sdn Bhd, buyers were to receive 10% of their deposit amount as compensation year-on-year should there be a delay.
“We have been waiting and suffering for so many years and are already old, we just want compensation plus the interest for the loss of not being able to invest in anything else for the past 20 years,” he said, adding that the buyers had engaged a lawyer to help with claims against DBKL and the previous developer.
Meanwhile, Melvin Chan, 36, received an offer from Profit Consortium on behalf of his father, Chan Kwok Chin, 63, returning 100% of his RM100,000 down payment.
“My father bought a unit more than 22 years ago in 1994.
“We are lucky we can get something back after so long,” he said.
He added that cash compensation was a better option than receiving a shoplot in return, for fear of further delays as the building plans had yet to receive approval.
“It was the previous developer who went bankrupt but the current developer is helping the buyers as a goodwill gesture,” said Chan.
Lawyer Derek Fernandez, who is representing Profit Consortium, said he was only involved in assessing the claims submitted, which were then given to the company’s board to decide on compensation subjected to documents provided as proof.
“Each case is decided by the board, who then gives me the authorisation to make an offer for cash ex gratia payment, which I then pass on to them.
“About 104 letters of offer have been issued and 85% of those have been accepted and paid.
“A total of 11 have rejected.
“The balance is pending on those who have filed applications late after the closing date or are in various stages of appeal.
“The settlement began in August 2016 and is still ongoing, with offer letters being issued every two weeks,” said Fernandez, adding that they aimed to complete issuing offers to all buyers by April.
The developer and DBKL, as the landowner, do not actually have a legal obligation to pay.
The amounts involved are just ex gratia cash compensations and there is no actual legal case against the current developer.
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