What specific breach of contract led to the lawsuit?

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The Lawsuit Arose from a Breach of Contract Regarding Rental Payments Under a Guaranteed Rental Returns Scheme

The lawsuit was initiated by 137 homeowners of The Arc @Cyberjaya condominium against the developer, Maju Puncakbumi Sdn Bhd, due to a breach of contract. This breach specifically involved the developer's failure to uphold the terms of a Guaranteed Rental Returns (GRR) scheme, wherein the developer had agreed to rent the condominium units from the owners at a predetermined monthly rate but ceased these payments in 2016.
Developer's Default on Rental Payments

The core of the legal dispute centres on Maju Puncakbumi Sdn Bhd's alleged default on its contractual obligations. Under the Guaranteed Rental Returns (GRR) scheme, the developer had entered into an Option Agreement with the unit owners, committing to rent their properties for a fixed monthly sum. However, the homeowners asserted that these stipulated rental payments were stopped by the developer as early as 2016, constituting a breach of their agreement.
Court of Appeal Upholds Previous Ruling

The Court of Appeal's recent decision dismissed Maju Puncakbumi Sdn Bhd's appeal against a prior ruling. This dismissal means the developer must comply with the original High Court decision, which had awarded the 137 plaintiffs RM3.97 million in their class action suit. The appeal sought to overturn or stay the damages previously granted to the homeowners.
Financial and Possession Orders Against Developer

As a consequence of the dismissed appeal, Maju Puncakbumi Sdn Bhd has been ordered to deliver vacant possession of the condominium units to the 137 owners. Furthermore, the developer is obligated to pay a total of RM3.97 million. This sum encompasses outstanding rentals, agreed-upon liquidated damages from the termination of the GRR scheme until its expiry, and accrued interest. The developer also faces additional costs of RM15,000 for the High Court proceedings and RM7,000 for the appeal.

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What specific breach of contract led to the lawsuit?

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