NINETEEN Plaza Rakyat lot owners are demanding they be charged the same price for their units, as stated in the sales and purchase (S&P) agreement signed more than two decades ago, when the development project restarts.

This comes after Federal Territories Minister Khalid Abdul Samad last week said two abandoned projects in Kuala Lumpur, namely Plaza Rakyat and Hyatt Hotel, will be redeveloped.

He had said Plaza Rakyat, located in Jalan Pudu, would be built by a new developer, with the development order to be released later this year after certain charges set by Kuala Lumpur City Hall (DBKL) were settled.

Lawyer Manpal Singh Sacdev, representing the buyers, said it is the responsibility of the Federal Territories Ministry to commit to and fufil agreements involving Plaza Rakyat lot owners.

He told The Malaysian Insight that DBKL, as the landowner, is responsible for abiding by the S&P agreement.

“The S&P was signed by DBKL, the developer and the lot owners in 1995.

“The lot owners are asking that when the project starts again, they are able to purchase units at the price agreed on more than 20 years ago.”

He said the units had cost between RM153,000 and RM2 million.

“The lot owners also paid a down payment of 10% for the units.

“They are not seeking compensation (when the project restarts), but to get their units at the quoted price.”

It was failure on the part of the developer, not buyers, to get the project off the ground, he said.

“We need Khalid to make a decision on the recognition of the lot owners’ rights with regard to the S&P that they had executed.”

The lot owners have sent more than 10 letters to the Federal Territories Ministry, DBKL and Prime Minister’s Office, said Manpal.

“We are requesting a meeting to discuss this issue. The lot owners don’t want to take legal action. They want to settle the matter amicably.”

If this fails, he said, they will file for a judicial review.

It was reported in May that Guangzhou Xu Zhuo Enterprise Management Co Ltd proposed to buy a 43% stake in project developer Profit Consortium Sdn Bhd, and that the China-based firm was expected to pay off the outstanding debt due to DBKL and recommence work on Plaza Rakyat.

The project is a mixed development comprising a 79-storey office tower, 46-storey condominium block, 24-storey hotel and seven-storey shopping centre.

It was abandoned in 1998, following the 1997 Asian financial crisis. – November 24, 2019.