Buyers lodge complaint over unfinished condo project

Managing director Peerasak Klinsunthorn insisted the firm would return all money to clients despite suffering liquidity problems.

Yesterday, some 31 people who paid deposits for rooms in the planned luxury block lodged a complaint with the DSI. The buyers accused the project owner of fraud, after four years of little progress on the building.

The buyers made statements and presented evidence to show they had paid a total of Bt28 million in reservation fees and a fifth of the price of each unit to the managers of In Style Estate Ekamai.

Peerasak said that to improve liquidity, the firm might sell the Charisma project to other developers, or seek partners to jointly develop it or refinance its loans. That should ensure clients receive deposits and down-payments back on demand.

He said the company had to prepare around Bt50 million on returning the money to a total of 80 clients.

"We have talked with all 80 clients. Most of them understand the company situation, but some want the company to quickly pay back the money," he said.

He noted that displeased clients had the right to file civil lawsuits against the group. But the firm was ready for the inquiry.

Buyers, however, told the DSI In Style promised to erect the 23-storey building by this month, but only a few pillars had been staked at the Sukhumvit 63 site since ads for the project appeared in March 2005.

Deputy DSI director-general Suchart Wonganantchai said the DSI would accept the case after verifying the buyers' claims.

In their statements, buyers said the company had spent more than Bt200 million it obtained via a Bt280-million mortgage, with the site used as collateral.

They said the company had recently lost three civil court lawsuits, and had been told to pay Bt280 million to a contractor, an advertising firm and a commercial bank.

Actress Paula Taylor, who bought one of the units, recently filed a suit against the firm and "won" repayment of Bt1.8 million.