Clear path ahead: Rehda says the Federal Court judgment has removed uncertainties.
PETALING JAYA: The Federal Court ruling is a reprieve for the industry, says Real Estate and Housing Developers’ Association (Rehda).
Welcoming the Federal Court judgment on the cases involving Prema Bonanza Sdn Bhd and Sri Damansara Sdn Bhd, Rehda president Datuk Ho Hon Sang said the association had continuously encouraged member and non-member developers to adhere to the law, both at the state and federal levels,
“These two developers have fulfilled their obligations, according to the terms of the contract in the development of their respective projects, and the ruling today (yesterday) is a recognition of that.
“We would also like to reiterate that we are not in favour of unnecessary extensions of time unless for very valid reasons, developers must honour the terms in the contracted sales to deliver within the time allowed by the law,” he added.
Rehda, he said, was heartened by the wisdom of the panel of Federal Court judges who delivered a balanced and fair decision, that removes the cloud of uncertainties in the determination of delivery period of properties.
The judgment would encourage property developers and related industry players to continue in their effort to provide housing to the rakyat.
“The ruling is particularly a reprieve for the industry, as it is now established that Regulation 11(3) which was declared ultra vires in the case of Ang Ming Lee & Ors v Menteri Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan (Housing and Local Government Minister) & Anor case in 2020 will not have retrospective effect, which otherwise would have been detrimental to the industry,” Ho said.
“Another point of law which was affirmed by the Federal Court was that the Second Actor Theory applies, where second actor who had relied on the first actor’s action, albeit being unlawful, i.e. the execution of the letter to grant extension by the Controller, should not be penalised.”
