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Federal Court rejects application to appeal single maintenance rate ruling

KUALA LUMPUR (May 21):  The Federal Court has today rejected an application for leave to appeal against the Court of Appeal’s (COA) decision in the Menara Rajawali case.

The COA had decided on Oct 4, 2019 that the Joint Management Body (JMB) of the mixed development is required to fix a single rate of maintenance fees for all the parcels in the project.

The COA’s ruling overturned a High Court decision earlier that JMBs are allowed to set different maintenance fee rates for different parcels in a mixed development.

According to the COA ruling, the JMB should calculate the maintenance charge for Menara Rajawali according to a fixed formula stated in the Strata Management Act 2013 (Act 757) which has already taken into consideration the different property types in a mixed development.

The landmark ruling has caused much debate among stakeholders due to its implication on parcel owners in mixed developments.

Among those who expressed their concern were the Malaysian Institute of Property and Facility Managers (MIPFM) who said a flat rate will be unfair to affordable housing owners in a development that also comprises high-end parcels as some facilities and amenities may not be accessible to the affordable housing residents.

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