Following an RM41.6 million lawsuit, the Malaysia Stadium Corporation (MSC) says it had terminated the agreement for the KL Karnival due to poor turnout.

It also cited several terms of the contract that the company behind the carnival failed to fulfil as per the initial offer letter.

"(The company failed) to pay the balance of its deposit, did not submit its insurance policy, and other matters.

"The cancellation was also done after taking into account the poor public reception for the carnival," MSC said in a statement today.

KL Karnival Sdn Bhd sued the MSC yesterday, claiming that it has suffered losses from the corporation’s unkept promise to lease it a 123,000 square feet (1.1 hectare) plot for three years.

It claimed that the corporation then changed its mind and instead wanted to sell the plot to a developer.

MSC, however, said KL Karnival was already informed beforehand about the land swap at the National Extreme Sports Park for the KL Sports City project.