FREE MALAYSIA TODAY. 14TH JUNE: Plaintiffs claim the group misrepresented the property’s features, ignored safety defects.
Newly listed Radium Development Bhd, whose shares have tumbled 26% since its Main Market debut on May 31, 2023, is facing a legal battle with its housing residents.
In a filing with Bursa Malaysia yesterday, the group announced that its 80%-owned subsidiary Vistarena Development Sdn Bhd has been served with a writ of summons filed by 241 individual owners of Block B, Residensi Platinum OUG.
The lawsuit claimed alleged misrepresentation and breach of contract in relation to the sale of the property project, which is located in Bukit OUG, Kuala Lumpur.
One particular point of contention relates to the lack of separate entrances to Block A and Block B, which was allegedly used to justify a significant price differential between both blocks.
“The plaintiffs are concerned about the potential for a future management corporation to reallocate rights to use common facilities, disadvantaging Block B residents.
“Hence, the plaintiffs allege the value of Block B has declined, and the defendant has not taken responsibility,” the statement said.
The plaintiffs are seeking an injunction against the defendant to take all necessary steps to construct two access ways at entrances to Block A and Block B within three months from the date of judgement.
They are also seeking RM25,000 each in exemplary damages to be paid by the defendant.
Apart from that, the plaintiffs also claimed that there are “severe defects in the common facilities provided by the defendant”.
They said that no action has been taken by the defendant to rectify safety-related defects despite multiple notifications having been issued.
The Residensi Platinum OUG comprises a combined development of condominiums (Block B), affordable housing (Block B), and civil servants’ housing (Block A) under the same development order.
Prior to the suit, on Oct 18, 2022, there was a meeting held between representatives from relevant government authorities, the defendant, and other components of the residential project.
The meeting, however, concluded that the construction of separate entrances will be put on hold until a management corporation is formed.
At market close, Radium’s share price was unchanged at 37.5 sen – down 25% since its market debut – valuing the group at RM1.3 billion.