Why did the Federal Court rule the businessman responsible for his own RM23 million loss?

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Federal Court Finds Businessman Responsible for Own RM23 Million Loss in Botched Land Deal

The Federal Court ruled that businessman Ong Koh Hou was responsible for his own loss of RM23 million in a land deal, concluding that he was "the architect of his own loss." This decision overturned a previous Court of Appeal ruling that had ordered the sellers to return the money. Ong had initially agreed to purchase four plots of land in Rawang for RM25.5 million in 2015, paying RM23 million upfront to sellers Lim Swee Choo and Chiam Eng Huat.
Separate Agreement Led to Loss

The Federal Court determined that Ong's loss stemmed from a separate agreement he entered into directly with DA Land Sdn Bhd to purchase three of the plots for RM84 million, utilising the RM23 million already paid as a deposit. This subsequent deal, which excluded the original sellers, was a key factor in the court's finding that Ong had effectively orchestrated his own financial setback. The court found no total failure of consideration in the original transaction.
Unlicensed Moneylending Factor

The Shah Alam High Court had previously identified Ong as an unlicensed moneylender, a detail that contributed to the significant price discrepancy observed in the transactions. This prior finding by a lower court also appears to have played a role in the Federal Court's assessment of Ong's responsibility within the complex dealings surrounding the land acquisition.
Original Transaction and Outstanding Payment

In the initial 2015 agreement, Ong paid RM23 million of the RM25.5 million purchase price for four plots of land. However, the title transfers could not be completed because one of the plots had a caveat placed upon it. Consequently, the Federal Court ordered Ong to pay the outstanding balance of RM2.5 million to Lim and Chiam, along with five per cent annual interest, RM150,000 in legal costs, and general damages to be assessed.

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Why did the Federal Court rule the businessman responsible for his own RM23 million loss?

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