A Subang Jaya consumers association today warned the errant developer of a failed housing project in USJ 19 to meet with buyers and facilitate a payback scheme or the matter will be brought up for resolution by higher federal authorities.

The development project to construct apartments and shops in USJ 19, called Rhythm Avenue, raised the concern of buyers when developer Sanjung Utama Sdn Bhd failed to meet its schedule to hand over vacant possession of the properties by last December.

Dr Jacob George, who is the president and legal adviser of the Consumers Association of Subang and Shah Alam (Cassa), said the matter will be raised with Deputy Prime Minister Abdullah Ahmad Badawi.

He said the root causes of the problem point to possible foul play and misconduct involving the projects professional bodies.

If the developer or its agent does not get in touch with Cassa to propose redress to the buyers, we will bring the matter to the deputy prime minister and release evidence gathered which will incriminate a lot of individuals and companies, including a second board company, George told the press this afternoon.

According to him, some 40 buyers appealed for assistance from Cassa to find out the progress of the project.

Some of the buyers are young couples who have borrowed money to purchase the units. They no longer have confidence in the developer and they want their money back now, with interest, to purchase property elsewhere, said George.

Inform buyers

In relation to the project, George said developers who require additional time to fulfill their contractual obligation to hand over the properties must inform buyers of the delay.

However, he said no correspondence has been made and purchasers seeking an explanation from Sanjung Utama got the runaround instead.

Several purchasers have complained of deliberate action by the developer to avoid them.

Those who complained to relevant authorities have even been told (misleadingly) that buyers of serviced apartments are not protected under the law, said George.

According to him, the developers have already collected 95 percent of the purchase price from banks financing the purchases of some 880 serviced apartment units within the project area.

However, all signs at the development site suggest that the project has been abandoned by the developer, said George, who described the project as being only 65 to 70 percent completed.

The site is fenced up and there is no visible presence of any construction work. The signboard which is supposed to state the development project is also broken, he said, adding that the area is also overgrown with weeds.

George said when purchasers approached Subang Jaya state assemblyperson Lee Hwa Beng, they were informed that the developer was seeking a financier for the project.

Misleading statements

But the developer has already collected 95 percent of the cost of the property. Why should they need to apply for alternative financing? asked George.

There is clear evidence too that certain local politicians are aware of this and they have done nothing to help. Some are even issuing statements which are misleading or are blatant lies, he added.

In addition, several other professional bodies should also be queried, such as the architects in charge of the project, as they had issued the letter allowing the developers to collect 95 percent of the purchase price as early as three to six months ago, said George.

He urged Subang Jaya Town Council (MPSJ) President Ahmad Fuad Ismail to work with Cassa to resolve the problems faced by purchasers of the properties.

He added that a solution should be found immediately as the same developer is also responsible for another project named Newgate Avenue in neighbouring USJ 21.

Meanwhile, Lee and Ahmad were unreachable for comment. Attempts to contact Sanjung Utama were also unsuccessful.

Buyers who wish to contact Cassa may do so at 012-366 4444 or 017-303 0030.