- UDA in dilemma as developer pre-sold apartments to public
- Projects commenced in 2014 at standstill despite UDA warnings
The Urban Development Authority (UDA) is currently stumped on how to address the dilemma created by the failure of the Destiny Mall and Residency Project to recommence construction, given that the developer has already pre-sold apartments to the public.
Speaking to The Sunday Morning Business, UDA Deputy Director General – Real Estate and Land Management E.A.C. Piyashantha stated that construction of the Destiny Mall and Residency Project, which commenced in 2014, was at a standstill.
He said that despite repeated warnings by the UDA informing the developers that the development period under the agreement would be expiring by next year, they were yet to receive any indication that construction would commence any time soon.
Commenting further, he stated that while he was unaware whether the developer was facing any financial trouble, the foreign investor appeared to have left the country, with only the local representative left to answer to the UDA.
Responding to a query on what action would be taken by the UDA against the developer, he stated: “We are yet to reach a decision on what we will do. The final decision is obviously to terminate the agreement. But if we cancel the agreement, what happens to the people who have already bought apartments? We are currently waiting and observing developments. If we are to resort to legal action, it will inevitably lead to the termination of the project, which is prejudicial to the interests of the people who have already invested.”
He further revealed that despite the UDA requesting information from the developer on the number of apartments that have been pre-sold, such requests had been ignored.
The Destiny Mall and Residency, with Imperial Builders as its developer, was positioned as a development comprising 210 luxury apartments on a one-acre property at the corner of Sir Justice Akbar Mawatha and R.A. De Mel Mawatha, Colombo 2, opposite the former Elephant House building.