Rehda: All parties should work together to rid illegal projects

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Abandoned projects affect homebuyers and the property industry negatively. Photo — SS KANESAN/ The Star

Abandoned projects affect homebuyers and the property industry negatively. Photo — SS KANESAN/ The Star

PETALING JAYA: Members of the Real Estate and Housing Developers’ Association (Rehda) Malaysia will be vigilant in identifying and reporting projects by individuals posing as developers. 

In saying this, Rehda president Datuk NK Tong said the association is cognisant that the issue is linked to abandoned projects and is difficult for the Housing and Local Government Ministry (KPKT) and state authorities alone to address. 

Calling for cooperation from all stakeholders to curb illegal projects, he added that Rehda is keen to work with KPKT on the issue, adding that illegal projects are difficult to detect for several reasons, particularly prior to abandonment as the developments may be built in rural and suburban areas, and in pocket developments where the scale of the project is small. 

“More often than not, these individuals masking as developers are also operating without any Advertising Permit and Developer’s License (APDL), thus tracking them is understandably hard. As a result, taking appropriate and timely action is a Herculean task, although we are confident (KPKT) will find the appropriate measure to curb this before it worsens,” Tong said.

He also said that the complicity of errant lawyers and loan officers too, is responsible for the projects to continue prior to abandonment.

“Legal services and loan financing offers should have been halted for projects without approved APDLs such as these, and we believe that the responsibility should fall under these lawyers and loan officers to report such activities to the authorities,” Tong said, adding that such parties must be investigated and action be taken against them and others for abetting in illegal developments. 

As the issue affects both homebuyers and the property industry negatively, he said all parties should work together to rid the menace and hoped the authorities remain vigilant and take action on the individuals masking as developers. 


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