Federal Court rules developers must pay for late delivery of properties

COMMENT | The housing industry, which is already in a pickle with large numbers of unsaleable upmarket property and a glut in commercial property, has taken another hit that could collectively run into more than RM1 billion.

Yesterday, the Federal Court held that the ad hoc and generous extension of time (EoT) which developers enjoyed, courtesy of the Housing Ministry, is illegal. Any extension accorded, even in the past, is ultra vires the laws related to the housing industry.

Chief Justice Tengku Maimun Tuan Mat said that granting extensions or modifications to the prescribed terms and conditions would deny buyers the right to claim for liquidated damages.

“These modifications and the granting of extensions of time to the developer do not appear to protect the purchasers, which militates the intention of Parliament,” she said in allowing the appeal of 104 buyers...