EcoFirst unit hit with suit over 12-year delay in obtaining strata titles

• The purchasers argue that Wize Platinum and Pujian Development have breached Section 8 of the Strata Title Act, which states the developer is required to apply for the strata titles within six months from the issuance of the certificate of completion and compliance. 

KUALA LUMPUR (Aug 7): A subsidiary of property developer EcoFirst Consolidated Bhd (KL:ECOFIRS) has been sued by purchasers of an apartment development in Seri Kembangan concerning an over-decade-long delay in obtaining strata titles.

Besides the wholly-owned subsidiary and land owner, Pujian Development Sdn Bhd, the 46 purchasers are also suing Wize Platinum Sdn Bhd, the developer of The Academia @ South City Plaza project.

The purchasers allege that the two defendants failed to procure strata titles for the project after its completion in August 2012, according to EcoFirst’s bourse filing on Thursday.

The delay in obtaining the strata titles has stretched to over 12 years which continues to their detriment as they suffer losses in capital appreciation and lack legal ownership over their units, the purchasers claimed.

Via the suit at the High Court, the purchasers seek to compel the defendants to obtain the strata titles, Pujian Development to transfer the titles to them, as well as pay compensation for the delay amounting to RM7.59 million, being 5% per annum on the total purchase price per unit within the number of years of delay. 

The purchasers argue that Wize Platinum and Pujian Development have breached Section 8 of the Strata Title Act, which states the developer is required to apply for the strata titles within six months from the issuance of the certificate of completion and compliance. 

EcoFirst said Pujian Development will instruct its solicitors to contest the matter.

Ecofirst added that the estimated potential liability from the case is the RM7.59 million compensation payment sought. However, the suit is not expected to have any material operational impact on the group, it added.

The Academia comprises two blocks of 13-storey service apartments amounting to 416 units, on top of the South City Plaza Complex in Seri Kembangan.

Shares in EcoFirst ended unchanged at 39.5 sen, valuing the company at RM471.31 million.

Does Malaysia have what it takes to become a Blue Zone, marked by health and longevity? Download a copy of EdgeProp’s Blueprint for Wellness to check out townships that are paving the path towards that.