Magna Prima suing PKNS for land sale termination

PETALING JAYA: Magna Prima Bhd has served a writ of summons against Perbadanan Kemajuan Negeri Selangor (PKNS) and is seeking a special damages claim of RM2.42 million pertaining to the termination of a RM7.4 million land sale.
In a filing with the stock exchange yesterday, the property developer said the expected losses are restricted to the costs of the land of RM7.4 million and costs of development of RM4.45 million.
It said the termination by PKNS was unlawful, hence compelling PKNS to fulfill its obligations relating to said deal.
To recap, Magna Prima's wholly-owned subsidiary Ibsul Development (Sel) Sdn Bhd had on August 5, 2009 entered into a sale and purchase agreement with PKNS for the acquisition of two parcels of land for RM18.5 million.
The purchase price for Plot A and Plot B are RM11.1 million and RM7.4 million respectively.
Magna Prima had fully paid for Plot A land and the development on the land was completed by Ibsul.
"The reason leading to the Writ of Summons was due to termination by PKNS on the said sale and purchase agreement with regards to Plot B which Ibsul asserts was unlawful," Magna Prima told Bursa Malaysia.