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EcoFirst Consolidated Bhd (ECB) said that its wholly-owned subsidiary, Pujian Development Sdn Bhd (PDSB), has been served with a writ of summons and statement of claim by 46 purchasers of units in The Academia @ South City Plaza.
The suit, filed in the High Court in Kuala Lumpur, also names Wize Platinum Sdn Bhd — the project developer — as the first defendant, while PDSB, the registered landowner, is named as the second defendant.
The plaintiffs are seeking a court order to compel both defendants to obtain the strata titles for the project within six months or within a timeframe the court deems appropriate.
They are also asking for the defendants to execute and deliver the memorandum of transfer (MOT) and the strata titles to the purchasers within 21 days of the titles being issued.
In addition, the plaintiffs are claiming compensation totalling RM7.59 million, based on a 5% per annum interest on the purchase price of each parcel for the period of delay.
They are also seeking further interest from the date of the cause of action until full settlement, legal costs on a solicitor-client basis, and any other relief the court considers just and appropriate.
According to the statement, the plaintiffs allege that despite the Certificate of Completion and Compliance (CCC) being issued on August 3, 2012, the defendants have failed to secure the strata titles.
The delay, now spanning more than 12 years, has allegedly caused the purchasers financial losses due to missed capital appreciation and the lack of legal ownership of their units.
The plaintiffs argue that the defendants have breached both Section 8 of the Strata Titles Act 1985, which requires the application for strata titles within six months of CCC issuance, and Section 7 of the Strata Titles (Amendment) Act 2013, which mandates issuance within three months.
ECB clarified that PDSB is not a major subsidiary of the group and that the potential financial impact of the suit is currently uncertain.
However, the company does not expect any material operational impact on the group.
PDSB will be appointing solicitors to contest and defend the matter. — TMR
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The post EcoFirst unit sued for RM7.6m over 12-year delay in strata titles appeared first on The Malaysian Reserve.