News: Buyers of Abandoned Housing Project Wants Ownership Over Land

Jun 7, 2018


The former workers at the Bukit Beruntung Estate, who were supposed to benefit from Rawang’s abandoned Desa Beruntung housing development, wants to obtain ownership of the 4ha land intended for the project, reported The Star.

In 1991, the developer and the workers’ union signed an agreement, whereby the former will build houses for the workers once the site was developed. Then in 1999, 54 workers inked sales and purchase agreements to buy affordable terrace homes for RM25,000 to RM26,000 each.

But in 2002, the housing development was abandoned as the units there could not obtain certificate of fitness for occupancy as there was no access road and water connection, said Parti Sosialis Malaysia Treasurer Sivarajan Arumugam, who is helping the workers.

“How a project plan obtained approval with no water supply and no access road is beyond me,” said Hulu Selangor MP June Leow, who got a copy of the 1991 deal from Sivarajan.

As such, she promised to refer this case to the Housing Ministry to solve the workers’ problem.

“Many of us are from the lower income group. This is our hard earned money. Imagine what it was like for us to work hard and pay for a house only to discover that our dreams of owning a home will never come true,” said Tamilselvan Gopalkrishnan, one of the former estate workers.

Another former worker, 47-year-old Sinnakannu Kali, revealed that he had borrowed money from friends to fork out the RM3,000 deposit for the residential property.

“I was in my 20s then and earned about RM1,000 a month. Half of my salary went towards loan repayments,” he shared.

To address this issue, Sivarajan is urging the authorities to look into this matter as developers are only allowed to develop estate land once getting approval from the Estate Land Board. In addition, the board can only greenlight the project after the developer announced its plans to relocate and rehouse the estate workers.

The former workers also revealed that while they have not received any compensation from the bankrupt developer, its parent company is still operating an oil palm plantation on the site intended for the residential development.

When contacted, a representative from the developer said they had offered to give back the workers’ payments for the houses, but the workers refused this.

If you are a victim of an abandoned housing or an ill-treating developer, speak to our experts on how one can avoid and overcome this situation. Also, read up on how to purchase a property here

Image sourced from The Star Online

This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email



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