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Developers in bed with underworld contractors face ban, Penang says

March 29th, 2014 Leave a comment

Penang will blacklist any developers found in cahoots with “gangster contractors” who intimidate home buyers into engaging them for renovations.

The state government said it has arranged to meet with the Penang police chief to crack down on the group allegedly intimidating and threatening new home buyers into engaging their services, especially in high rise projects.

“We will not tolerate this. If we find any developer involved in designating these gangster contractors to intimidate and threaten home buyers into booking their renovation services at their projects, we will not hesitate to blacklist the developer,” said Penang Housing state executive councillor Jagdeep Singh Deo.

He told a press conference that he had recently received complaints from home buyers who alleged they were threatened for not engaging the project’s designated contractor to undertake renovation works on their newly completed apartment units.

“They now fear for their safety as they had been threatened,” he said.

This is not the first time such incidents took place, and Jagdeep admitted that it has been going on for years in other residential high rise projects in the state.

Such cases involve “designated” contractors who set up temporary stations at newly completed apartments and allegedly coerce home buyers planning to renovate their units to use their services.

Home buyers who appoint their own contractors will be forced to either pay a “fee” or to buy renovation supplies such as cement and tiles from them.

“I have said this before, there is nothing in the law that requires home buyers to up take up renovation packages if they don’t want to and this most definitely is not in any sales and purchase agreement,” Jagdeep said.

He called on all home buyers who faced similar issues at their apartments to lodge police reports against the errant contractors.

“This is criminal intimidation and harassment. The police can take action against them,” he said.

He said the state will urge the police to act harshly against these contractors while the state will check to ensure the developers are not in cahoots with these contractors.

Source: The Malay Mail Online

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  1. condomana
    March 29th, 2014 at 11:45 | #1

    Ban developer? Well, nice to hear, but can execute or not?

    As of today, DIBS (in a different name) is still widespread in the market. Has the regulator done anything? ….:)

  2. mex
    March 29th, 2014 at 12:10 | #2

    I know Elite Heights at Bayan Baru there have plenty “gangster contractors” cases

  3. ush-ush
    March 29th, 2014 at 12:53 | #3

    come on lah….this ‘culture’ had been there for many many years……many police report had been logged……SO? any improvements?? the answer is NO AT ALL…!!!

    Elit Heights, DPizza, Idaman xxx, IDxAL’s project, Vistx Gambier, and many more projects…..all haunted by this bad culture……SO WHERE IS THE POLICE / ENFORCEMENT TEAM??

  4. KLA
    March 29th, 2014 at 13:58 | #4

    Talk big la, go to any newly completed high rise building n see for yourself, the table is placed right b4 all the lift. Want to ban, then sekali ban all those major n small developer.

  5. lol
    March 30th, 2014 at 08:56 | #5

    nusmestro:oasis condo had this problem. CA Goh:central park had this problem.

  6. lol
    March 30th, 2014 at 09:00 | #6

    So developers are smarter now. They include their gangster contractors in their renovation packages. Just like Arte S by Nusmestro. They have renovation packages available as part of their selling price. At the end of the day, it is the same gangster contractor who will be doing the work for them

  7. lol
    March 30th, 2014 at 09:05 | #7

    @condomana
    In all fairness, the regulators did ban DIBS but you can’t ban developers from giving rebates and discounts. So DIBS does not exist anymore and the cost of holding debt has indeed increase making it harder for speculators to speculate.

  8. Jojo
    March 31st, 2014 at 10:23 | #8

    Ideal having the same issue….. who’s going to blacklist it?

  9. condomana
    March 31st, 2014 at 10:58 | #9

    @lol

    What’s the difference between “rebating” your interest for loan progressively until OC vs rebating your interest “in-one-go” in the form of a discount?…:) Both entails the marking up of S&P selling price. No?

    In other words, both would be “good” to consumers IF, and that’s a BIG IF, the price of properties have to follow a “fixed schedule”, determined by the regulators. Don’t like the idea? Why not?….:)

  10. condomana
    March 31st, 2014 at 20:01 | #10

    @lol

    What’s the difference between “rebating” your interest for loan progressively until OC vs rebating your interest “in-one-go” in the form of a discount?…:) Both entails the marking up of S&P selling price. No?

    In other words, both would be “good” to consumers IF, and that’s a BIG IF, the price of properties have to follow a “fixed schedule”, determined by the regulators. Don’t like the idea? Why not?….:)

  11. yy
    March 31st, 2014 at 22:47 | #11

    talk big but no action…it always ends up the same…this has been going on in PG island for years and all over the place. if u really want to stop this, don’t expect the residents to report it to the police WHEN it happened, why don’t u “state government” put up a clause and prevent ppl from placing a table in front of the elevator instead??!! this is call prevention before it happen!

  12. lol
    March 31st, 2014 at 23:13 | #12

    @condomana
    Since when in the world that developers have to follow a fixed schedule in terms of pricing by regulators. Rime to wake up mr.in condomana. You are talking blasphemy. Even in communist China and Russia such things dont exist. We are living in a capitalist world. Keep it real please and not simply saying something for the sake of being critical without substance.

    @yy
    Form a committee and set the house rules. The state can’t stop people from putting tables in front of the elevator but the owners can through the committee. I find it very funny when you guys talk without thinking it through.

  13. condomana
    March 31st, 2014 at 23:50 | #13

    @lol

    Well, if you can tell me 3 bad consequences of fixing property price, I would accept your criticism of “critical without substance”….:)

    I know you are not used to “critical thinking”, but just exercise your brain a little bit tonight, and think it through carefully?….;)

  14. lol
    April 1st, 2014 at 08:28 | #14

    @condomana
    I dont think you understand the concept of Capitalism and democracy. You didnt even answer my question. Since when did any country fixed their property prices according to a schedule? Name me one country. If what you suggested is considered “critical thinking” I am very sure you wont go far in life. How about fixing prices for food as well? Critical thinking? I am flabbergasted at your concept of critical thinking.

  15. condomana
    April 1st, 2014 at 09:58 | #15

    @lol

    Haha….

  16. test
    April 1st, 2014 at 11:19 | #16

    good English, prep the popcorn.

  17. olo
    April 1st, 2014 at 12:59 | #17

    Let’s see how things unfold

  18. Sim
    April 2nd, 2014 at 16:56 | #18

    yy :
    talk big but no action…it always ends up the same…this has been going on in PG island for years and all over the place. if u really want to stop this, don’t expect the residents to report it to the police WHEN it happened, why don’t u “state government” put up a clause and prevent ppl from placing a table in front of the elevator instead??!! this is call prevention before it happen!

    You noob? Because this, YES many new buyers are facing this problem. But did you visited any new OC obtained projects? So far my condo dont have such things already.

  19. H
    April 6th, 2014 at 22:33 | #19

    @Sim

    What is your condo without gangster contractor? I know my friend’s condo at The Peak has no gangster contractor.

    But from where I am, Bandar Baru Air Itam, all kena! Table next to elevator. Boulevard, Melody Homes and now All Seasons Park have the same gangster contractor! Same party! Sampah fee at All Seasons Park RM1500! People already start to report to police, now waiting for action.

  20. H
    April 6th, 2014 at 22:36 | #20

    You need very solid proof… and need to see the mood of the police!

    I agree with YY, police need to act as undercover to catch this contractor. Just wear casual, walk into All Seasons Place holding a spana or big screw-driver and you will be stopped by the gangster contractor asking you lots of questions and demanding the owner pay the sampah fee!

  21. F
    April 7th, 2014 at 12:27 | #21

    @H

    When approached by gangsta contractor, always talk nice and decline to pay nicely. Do not confront them. Always remind your legitimate contractor not to pay them also.

    Always remember, must do the right thing, don’t take the easy way out. Your children’s future depends on what you do today.

  22. yy
    April 7th, 2014 at 14:32 | #22

    @H
    Sim never visited bandar baru area before, how will he know…maybe his multi million condo don’t have such issue…pity us poor ppl…what even worst is the management also pakat with the gangster contractor from the very start… like what H said, why don’t u try go in and disguise urself as a contractor to all season and see what happen…there’s ur facts!

  23. Shila
    April 23rd, 2014 at 19:40 | #23

    H :
    @Sim
    What is your condo without gangster contractor? I know my friend’s condo at The Peak has no gangster contractor.
    But from where I am, Bandar Baru Air Itam, all kena! Table next to elevator. Boulevard, Melody Homes and now All Seasons Park have the same gangster contractor! Same party! Sampah fee at All Seasons Park RM1500! People already start to report to police, now waiting for action.

    Please update. Shineville park need help also

  1. November 5th, 2016 at 16:07 | #1
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