Project launched with huge publicity

Above: The report on the signing agreement between Yeng Chong Realty Sdn Bhd and MBSB Delopment Sdn Bhd in The Star in April 1999 and below, in the Utusan Malaysia on the same event.

The full-page advertisement in a Chinese newspaper promoting the land sale

The country's main newspapers were invited to witness the signing of the agreements between Yeng Chong Realty Sdn Bhd and MBSB Development Sdn Bhd and between Yeng Chong and MBSB Berhad. Shown above are cuttings from two newspapers which prominently reported on the event.

Buyers were also treated to a dinner at the Shangri-la Hotel to celebrate the launch. Now, almost 10 years down the road, Yeng Chong is in a legal battle with MBSB. Meanwhile, land buyers are left in the lurch, wondering when they are going to get their money back, money which they paid monthly into a Yeng Chong/MBSB account and which Yeng Chong said was frozen. The money belongs to the land-buyers, so why can't they get it back now?

It is hoped that more land buyers will come forward to join the pro-tem committee set up by some of the buyers to fight for their rights to the money.

Unity is strength

Buyers See Red!
Still waiting for land, after 10 years

Some 50 purchasers of the Bandar Golden Valley Golf Resort in Jasin, Malacca, have decided to form an action committee to fight for their rights to the land. Calling themselves the Bandar Golden Valley Action Group (BGV Action Group), the land buyers have met twice to initiate plans to get themselves heard. It is understood that there are hundreds of buyers out there, if not into the thousand. It is hoped that with the setting up of the action group, others will come forward to lend their voice.

The land sale was initiated by Yeng Chong Realty Sdn Bhd, the original owner of the land. Parcels of land were sold via a multi-level-marketing scheme in 1999. The lots were sold off fast as buyers thought it was a viable project, one funded by the Malaysian Building Society Bhd, as stated in the Sales & Purchase Agreement. It was also stated in the S&P that the project would also be developed by Yeng Chong on a joint-venture basis with MBSB Development Sdn Bhd, a subsidiary of MBSB. The signing ceremony of the joint-venture agreement were publicised in the major newspapers like The Star and Utusan Melayu. The land sale was also advertised in full-page ads in the Chinese Press.

The purchasers had to pay for the land for a fixed sum without interest over a period of 10 years. The land would be sub-divided and the infrastructure would be built within three years and the land handed over to the buyers to build their homes. It has been 10 years and nothing was done to the land.

Some buyers are still paying for the land as Yeng Chong Realty is still asking for payment and sending reminders to them saying that overdue instalments will be charged a 10 per cent interest. Many thought the land was there and if anything should happen they would be able to get their money back. They have been told by the Yeng Chong Realty office that the money is safe as it is in an account set up under "Yeng Chong/MBSB" and that it had been frozen, so no one could touch it. Buyers kept on paying their instalments because they did not want to pay the 10 per cent penalty and they were still confident that their money was safe in the frozen account.

Lately, some angry buyers met up with the Yeng Chong management and were told that the project was held up because they were in a legal tussle with MBSB. The land is charged to MBSB and the purchasers are worried that they would not get the land if MBSB wins the case.

Some buyers have also approached MBSB for some answers and were told that they had nothing to do with the S&P agreement, although MBSB Development was named as the joint-venture developer. They maintained that the S&P was signed with Yeng Chong and not with them. However, buyers are puzzled as they had been remitting money to this account set up under "Yeng Chong/MBSB" and they have not received any denials from MBSB that they had no involvement in the joint account.

Now the land purchasers want their money back but were told that the account was frozen because of the legal battle. But is the money still there? The land buyers are demanding that some one in authority will step in to help them as they are in the dark over the actual situation.

Others have stopped paying their instalments only recently, so their investment is quite substantial, as much as RM100,000. A few buyers bought more than one plot. Many have stopped payment after the land was not handed to them for development after three years and would be owed about RM20,000 to RM30,000. However, all are crying foul that the developer is still holding onto their money while not developing the land. Some have taken legal action to try and get back their money. The National House Buyers Association's website at http://www.hba.org.my/laws/CourtCases/2006/chin_kit_yee.htm highlighted a case whereby the purchaser sued Yeng Chong Realty Sdn Bhd for refund of the money he paid. He won the case but he did not execute the judgement. We are wondering why?

Among the BGV action group was a civil servant and she told us that there were also civil servants who bought the land. We urge them, and all buyers, to come forward and join the action group so that we can demand for our rights in a concerted manner.

Many buyers were taken in by the brochure (front and inside pages) that was printed to promote the sale of the land in April 1999. Signing ceremony between Yeng Chong Realty Sdn Bhd and MBSB and its subsidiary MBSB Development Sdn Bhd was prominently promoted in the brochure.