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C-151 Villa Management in the Spotlight

Unhappy C-151 Villa Purchasers Seeks Legal Redress from PT Maximus Bali for Default in Management Practices.

(9/17/2011) Beritabali.com reports PT Maximus Bali, the management company for the Smart C-151 Resort in Seminyak, has been accused of default before the Denpasar Bali courts. The legal proceeding has been brought to law in Bali by one of fourteen foreign owners of villas at the C-151 complex said to be displeased with the management of their properties.

Of the villa owners, 13 have chosen to try to settle their claims abroad. However, one of the owners, John Mark Winders, has elected to bring his case before the Denpasar District Court.

The case was commenced before the court on Monday, September 12, 2011. The legal counsel for the 14 villa owners, Fredrik J. Pinakurnary, told the press that the remaining 13 villa owners were filing claims using different legal avenues. He said there were owners seeking settlement via the Singapore International Arbitrage Center (SIAC) while others are using the Royal Institution of Chartered Surveyors (RICS).

The suit against the managers of Smart C-151 villas dates from 2007 when Winders was attracted to advertisements offering the C-151 villas in Seminyak.

At that time, Winders purchased a villa unit with a price of US$450,000. According to his lawyer, other foreign investors originating from Australia, Holland, the U.S.A. and the U.K. also made similar purchases.

Said Pinakurnary, “because the promotional brochures promised professional villa management, the foreign investors were drawn to the project.”

Winders and the remaining 13 foreign investors purchased villas and signed working agreements with PT Maximus Bali. That agreement stipulated that the Indonesian company has the right to undertake promotion to persuade tourist visitors to Bali to rent the villas. Maximus Bali was to, in turn, pay a fee to the villa owners each year.

Over time, the attorney claims, the 14 foreign villa owners learned that other owners at the C-151 Complex were not required to pay the same high fees demanded of them by Maximus Bali. Claiming unfair treatment, Maximus Bali told the disgruntled villa owners that each villa owner at C-151 had a separate and different management arrangement.

Pinakurnary claims the 14 villa owners were treated in a discriminatory manner and, moreover, that Maximus Bali has also been negligent in handling the required income taxes due on the units.

Winders claims before the Denpasar District Court claims he has suffered losses of US$177,466 – an amount said to be roughly equivalent to the losses suffered by the remaining 13 villa owners. Winders is asking the court to compensate the losses and for Maximus Bali to be removed as the manager of the villa.