Developers must pay compensation for delayed projects before COVID-19 Zuraida

JOHOR BAHRU: The exemption for the Extension of Time (EOT) as stipulated in the COVID-19 Act (Act 829) involving the Housing Development (Control and Licensing) Act 1966 is only applicable for housing projects that were supposed to be completed between March and December last year.

Housing and Local Government Minister Datuk Zuraida Kamaruddin said for any delayed projects which supposed to be completed before March 2020, developers were still required to pay compensation or the Liquidated Ascertained Damages to buyers.

"We provide this exemption for COVID-19 from March until December 2020. Only for that period. Other than that, they have to pay compensation.

"However, for delayed projects this year, we can consider (to provide exemption) but they must have solid reasons. The consideration is only up to March 2021," she said in a news conference after handing-over the keys to house buyers of Taman Seri Molek Perdana Phase 1 and PPR Taman Perling, Johor, here, today.

Zuraida was commenting on whether the exemption for compensation payments allocated in Act 829 is also applicable to housing projects which supposed to be completed before the COVID-19 pandemic hit the country.

The COVID-19 Act involving the Housing Development (Control and Licensing) Act 1966 is part of the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) Act 2020 which had been passed in the Dewan Rakyat in August last year.

Under this act, developers are given temporary protection for delayed works due to the Movement Control Order since March 18, 2020, including they cannot be sued by buyers or banks for failing to complete their projects according to schedule.

-- BERNAMA