Class-action suit against The Arc @ Cyberjaya developer adjourned

PETALING JAYA: A class-action lawsuit representing 137 unit owners of serviced apartment project The Arc @ Cyberjaya against its developer Maju Puncakbumi Sdn Bhd has been adjourned.
The decision was made at the Shah Alam High Court today, after the lawyers were called into chambers by judicial commissioner Datuk Roslan Abu Bakar before he postponed the matter until Nov 9.
Vincent Lim, the lawyer who represents the owners, previously told SunBiz that the class action was filed against the developer on June 7 amid allegations that the owners stopped receiving their rental after a year.
It was reported that the project came with two types of guaranteed rental return (GRR) schemes, one for up to six years and another for up to 25 years with a gross 8% rental income per annum for the first term, of three and four years respectively.
Owners were given an option agreement to sign for the GRR scheme when they signed the sale and purchase agreement.
Lim said the owners’ claims against the developer included the outstanding rentals owe by the developer to them, 8% interest on the outstanding rentals, agreed liquidated damages as stated in the agreement, general damages, and/or aggravated damages, as well as exemplary damages.
On Oct 6, Meda Inc Bhd, the parent company of Maju Puncakbumi, told the stock exchange it denies promising a fixed rental income of up to 25 years to the apartment owners who have initiated the class-action lawsuit against its subsidiary.
Meda said according to an option agreement between owners and Maju Puncakbumi to exercise their option for a GRR, there is a fixed term of three or four years (depending on the unit), and the option to renew the agreement for up to 20 years was on Maju Puncakbumi.
“In fact, we have terminated the GRR scheme pursuant to the option agreement for majority of the units,” it said, noting the class-action suit is claiming breach of contract in relation to the option agreement.
Meda said the owners are claiming RM3.97 million being the outstanding rentals up till May 2017; 8% interest on the outstanding rentals; agreed liquidated damages as stated in the agreement, general damages, and/or aggravated damages, as well as exemplary damages; 5% interest from the judgement till the full payment date; cost; vacant possession of the unit; and any relief deemed fit by the court.
“We have already captured all the outstanding rentals amounting to RM 3.97 million, therefore, there is no financial impact in our books,” it added.
The project, which was launched in 2011, is a RM700 million freehold development, comprising four blocks of serviced apartments with at an average price of RM350,000 per unit and four blocks of office towers.