50 lot buyers of Plaza Rakyat have submitted proof

About 50 of the total 222 buyers of units of the abandoned Plaza Rakyat project in Pudu have provided the new developer with the necessary documents as proof of purchase to facilitate compensation.

They have been given until July 31 to submit all papers pertaining to the sale and purchase agreement, and original receipts issued by the original developer Plaza Rakyat Sdn Bhd (PRSB).

An aerial view of the abandoned Plaza Rakyat project in Jalan Pudu.

Bukit Bintang MP Fung Kui Lun said the new Plaza Rakyat developer had notified buyers on the matter through newspaper advertisements.

The proof of purchase, he said, was vital to validate the claims made by the former buyers.

“We want this issue resolved once and for all, it has been too long and the former buyers and their families deserve closure,’’ said Fung, who is helping the buyers make their claims.

Many bought units in Plaza Rakyat as investments to supplement their income in their later years, but instead, had ended up paying interest to the bank for two decades since the project was abandoned.

A buyer, 78-year-old Steven Yong, who bought two commercial units at Plaza Rakyat, said he was tired and happy to hear good news after waiting for 18 years.

“It was supposed to be completed in 2007. Some of the buyers have passed on as most of us are senior citizens. My only wish is to see the completion of the project while I am still alive,’’ he said.

The RM1.4bil project was 30% completed 15 years ago when PRSB ran into financial difficulties during the 1997/1998 Asian financial crisis, forcing it to abandon the project.

In 2014, Kuala Lumpur City Hall (DBKL) took vacant possession of the abandoned project site after repaying an RM150mil loan taken by PRSB from a consortium of banks. The original plan for Plaza Rakyat comprised a mixed development with a multi-storey office tower, condominium, hotel and a seven-storey shopping centre. - The Star