Eco-Shop faces multi-million-ringgit lawsuit over alleged unauthorised demolition in George Town

Eco-Shop Marketing Bhd is facing a lawsuit over the alleged breach of a tenancy agreement and the unauthorised demolition of a property located at No. 262, Jalan Gurdwara, George Town, raising questions about tenant responsibilities and the protection of older buildings in Penang.
According to a Bursa Malaysia filing, the retailer has been served with a writ of summons and statement of claim by Messrs Ismail, Khoo & Associates, acting on behalf of property owners Cheng Heng Yew and Cheng Kar Tong. Besides Eco-Shop Marketing Bhd, the suit also names Eco-Shop Marketing Sdn Bhd and four individuals as defendants.
The plaintiffs allege that the tenancy agreement was breached and that the premises were demolished without authorisation, resulting in significant losses. They are seeking a court order requiring the defendants to reconstruct the building within two years, together with monthly rental or compensation of RM35,000 until a Certificate of Completion and Compliance (CCC) is issued.
The lawsuit also seeks a RM20 million security deposit or bank guarantee to ensure the restoration or reconstruction of the property. In addition, the plaintiffs are claiming RM5.18 million in specific damages, RM10 million in exemplary damages, RM10 million in aggravated damages, as well as interest, legal costs and other relief deemed appropriate by the court.
In its filing, Eco-Shop said it is seeking legal advice and intends to resolve and/or defend against the claims. The company added that it is currently unable to determine the financial impact of the lawsuit, as the matter is still at a preliminary stage and will depend on the outcome of the court proceedings.
The scale of the claims has attracted attention, with the plaintiffs seeking tens of millions of ringgit in damages and financial guarantees, in addition to the reconstruction of the property and ongoing monthly compensation. While the allegations have yet to be proven in court, the case could become one of the more closely watched rental property legal disputes involving a listed retailer.
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