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ASMDKL files RM346 million countersuit against Econpile

Last update: 23/12/2019
KUALA LUMPUR, Dec 23 -- Real estate developer, ASM Development (KL) Sdn Bhd (ASMDKL), has filed a countersuit against contractor Econpile Sdn Bhd (Econpile) for allegedly failing to carry out the construction work for the luxury apartment project, Maju Kuala Lumpur (Maju KL).

ASMDKL, a subsidiary of Maju Holdings, filed the countersuit through Mssrs Edwin Lim & Suren at the High Court here on Nov 28, seeking damages totalling RM346 million.

ASMDKL chief executive officer Mohd Farid Nawawi in a press statement today said the company, as the plaintiff, listed 13 counterclaims for the damages after Econpile failed to carry out the construction work as scheduled.

He said the company also listed the extra operating costs incurred due to delays and incomplete work left by Econpile since March 1 this year.

ASMDKL had to appoint a new contractor to continue the construction work after Econpile failed to carry out the work as stated in the contract, he said.

Mohd Farid said ASMDKL also seeks payment for 110 units of houses amounting to RM67 million from Platinum Rhythm Sdn Bhd, belonging to Econpile directors and shareholders, obtained through a block purchase agreement inked on Aug 25, 2017.

He said the company filed the countersuit after Econpile, which was appointed to carry out the piling and basic structural work for the RM280 million project, stopped the work in early March this year.

“The countersuit also listed the claims for the defect in the early work of the project caused by Econpile amounting to RM33.8 million,” he said.

Mohd Farid said Econpile’s failure in completing the work had given a negative impact to ASMDKL, besides causing delays to the completion and the handing over of the 1,403 units to the buyers with claims amounting to RM98 million.

Prior to this, it was reported that Econpile had filed a suit against ASMDKL, seeking approximately RM67 million in ‘progress payment claims’.

-- BERNAMA





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