THE RM150 million estimation of compensation to developers to cancel the Rimba Kiara condominium project was based on a suit filed by them, said Federal Territories Minister Khalid Abd Samad.

“The cost is based on my understanding of what the developers had filed for,” Khalid said in a statement today.

“However, I was made to understand that the court would ultimately decide the cost,” added the Shah Alam member of Parliament.

He said the developers had asked for RM150 million in damages and compensation in a suit filed against the Kuala Lumpur City Hall (DBKL), when the authorities had revoked the project’s approval.

He was responding to Segambut MP Hannah Yeoh, who had questioned the amount payable to the developers, calling the figure “imaginary”.

“This alleged ‘RM150 million compensation’ is an imaginary figure and needs to be supported by receipts or proof of payment for the alleged transactions,” she said had.

Earlier today, two lawyers – Ambiga Sreenevasan and Derek Fernandez – said the price tag for cancelling the redevelopment of Taman Rimba Kiara may not be RM150 million if it is proven that the project was “tainted with illegality”.

In a joint statement today, Ambiga and Fernandez said contracts that are “tainted with illegality” can be cancelled and terminated without having to take into account its binding terms.    

“Where a contract is found to be tainted by illegality, the so called ‘binding contracts’ may be set aside, the development order revoked and the project terminated,” the statement said.

Khalid had earlier said that DBKL will have to fork out RM150 million if the project was not allowed to continue.

He said the final decision whether to proceed with the project will be made by the cabinet.

The project involves the construction of 350 units of affordable houses for Bukit Kiara longhouse residents, and eight blocks of 50-storey high-end condominiums. – March 26, 2019.