ABOUT 170 developers who have obtained development orders (DO) from Kuala Lumpur City Hall (DBKL) for their projects risk losing their deposit worth millions of ringgit if they fail to start construction in the next six months.
Kuala Lumpur mayor Datuk Seri Mohd Amin Nordin Abd Aziz said the DOs were awarded in September last year, and until August this year, over 80% had yet to start work.
“In fact projects are supposed to commence within six months after the DO is awarded, but many failed to start work and we have already warned them that if they fail to start work within the next six months they risk losing the 50% discount on DO charges given last year, and we will also withdraw the DO,” he added.
DBKL, he said, would be strict as it did not want developers to end up selling off the projects.
“We want them to prove to us that they will start work as agreed,” he said.
Last September, property developers were given a 50% discount on development charges for DBKL projects.
The offer was served as an incentive to encourage developers to continue building the city despite the slow economy.
“We gave them a hefty discount but we will take it back if they take it for granted,’’ Amin Nordin said, adding that the discount can range between RM500,000 to RM68mil depending on the project value.