Datuk Red, company ordered to pay RM1.4mil to 17 land buyers

KUALA LUMPUR – The Sessions Court here today ordered businessman Datuk Seri Adenan Abu, better known as Datuk Red, his company ADN Properties Sdn. Bhd. and an individual to pay RM1.4 million to 17 land buyers.

The order relates to the sale of land lots in Sungai Semungkis, Hulu Langat, Selangor, seven years ago.

Judge Siti Fatimah Talib also ordered Adenan and ADN Properties, as defendants, to pay RM170,000 in exemplary damages to all the plaintiffs.

In her judgment, Siti Fatimah said the company had entered into a master sale and purchase agreement with Hasmy to acquire land priced at RM1.8 million. However, ownership of the land was never transferred to ADN Properties and the master purchase price was not fully settled.

Based on the plaintiffs' testimony, the court found that Adenan was the actual controller of operations in the company's dealings. The court also found that fraud against the plaintiffs occurred through a series of representations and the concealment of material facts, as ADN Properties, through its agents and Adenan, portrayed the company as the landowner with a clear right to sell specific lots.

"The material facts not fully disclosed were that ADN was not the registered owner and the purchase price of the master land had not been settled. The estate matters and land approvals were incomplete, and ADN was not in a position to guarantee the transfer of specific lots," she said.

The court found the company had committed a fundamental breach — receiving the full price but failing to deliver the rights and promises, and failing to return the money received from buyers.

The judge said Adenan was not held liable merely because he was a company director.

"He was an active actor who controlled the company, signed the sale and purchase agreements, knew that ownership and the master payment were incomplete, continued selling lots and did not return the money received from the plaintiffs.

"The representation that ADN was able to deliver the lots was made at least recklessly. Accordingly, a tort dispute — a civil legal dispute arising from a wrongful act — has been proven against him," she said.

All the plaintiffs were represented by lawyer Bhavanash Sharma. The civil suits filed by the buyers against all defendants had earlier been consolidated and heard together.

The plaintiffs claimed promotional material described the land as suitable for residential development, with facilities such as a surau, school and recreation centre. They also claimed buyers were told the agricultural land status could be converted for development with an additional payment of RM1.50 per square foot.

However, land searches produced in the proceedings were said to show the land was still registered under the original owner's name and had never been transferred to ADN Properties. – KOSMO! ONLINE