Dahua received 17.7 million yuan in compensation for private housing prices in Shengtaowan
According to the Straits Times on Friday (July 18), the court pointed out that the conspiracy caused UOB to suffer significant losses after providing more than 100% of the purchase price for 38 apartments in Marina Collection.
The lawsuit is directed at Indonesian developer Lippo Marina Collection and two real estate agents Goh Buck Lim and Aurellia Ho.
However, UOB seeks to receive 92 million yuan in compensation and therefore intends to appeal.
This Shengtao Bay high-end private housing project is a high-end seaside residential area responsible for the development and sale of Libao Binhai Boutique Company, with a total of 124 units. The project was launched for sale in the end of 2007. After the government introduced a series of real estate cooling measures, the project only sold 42 units by March 10, 2011.
The High Court made an assessment of the damages on June 30. Previously, the Appeal Division of the High Court made an important ruling in 2022, overturning an earlier ruling, ruling that Libao Binhai Boutique Company, a subsidiary of Libao Group, should be responsible for the company's conspiracy with real estate brokers to mislead banks to issue high housing loans. After the court made a judgment in October 2022, the police began to investigate Libao Binhai Boutique Company.
According to the loan application documents, the prices of 38 units involved were between 5.24 million yuan and 7.05 million yuan, but UOB alleged that after a "furniture discount" of 1.25 million yuan to 2.39 million yuan, the actual price of the unit was between 3.74 million yuan and 4.66 million yuan. UOB claims to be kept in the dark, so it issued loans of RMB 4.2 million to RMB 5 million to each buyer, which is 400,000 to RMB 670,000 more than the actual purchase price.
In a long-lasting civil lawsuit that began in 2014 involving fraudulent bank loans for rising housing prices for Shengtaowan Binhai boutique private housing projects, UOB was awarded 17.7 million yuan in compensation.
Developers provide 22% to 34% high "furniture rebates" to later buyers. But the allowance information was not disclosed to UOB, so that the amount of loan approved by the bank based on the selling price on the purchase agreement exceeded the maximum limit at that time (80% of the purchase price), while the buyer received a considerable amount of cash.
Between December 2011 and September 2013, UOB issued approximately RMB 182 million in housing loans to buyers of 38 apartment units, but as of April 2015, all of these buyers' loans had defaulted.
Uobo Bank appointed a lawyer team to act as an agent in an attempt to recover 92 million yuan in losses. The court now ruled that UOB could receive a compensation of 17.7 million yuan, considering the repayments and rents that the bank had received. It is understood that UOB intends to appeal.
