KUALA LUMPUR: RHB Bank Bhd (KL:RHBBANK), Malaysia’s fourth-largest bank by assets, confirmed on Tuesday it has been named as the third defendant in a RM313.08 million lawsuit over the sale of a luxury property in Taman U-Thant, Kuala Lumpur.
The suit, filed by Prismaworld Embassyview Sdn Bhd in the High Court, pertains to the sale of the condominium site for RM145 million in December 2024. The property had been charged to RHB Bank as collateral for banking facilities, according to the bank’s filing with Bursa Malaysia.
Other defendants named in the suit include Tanah Bayumas Sdn Bhd — a 70%-owned subsidiary of Paramount Corp Bhd (KL:PARAMON) — along with Datuk Adam Primus Varghese Abdullah and Macpherson Simon of legal firm Adamprimus & Co.
Prismaworld is seeking several declarations, including the nullification of the land sale agreement, alleging that RHB breached its duty of care. The plaintiff also seeks an injunction to restrain all defendants from dealing with the land pending a proposed sale to Al Shamal L.L.C-FZ.
Additionally, Prismaworld has requested a redemption statement from RHB to facilitate the proposed transaction, and is demanding RM313.08 million in damages, along with rectification of the land title to reinstate it as the registered proprietor.
RHB clarified that the land was sold by the owner in receivership, not by the bank itself.
“The property remains charged in favour of RHB Bank until and unless the redemption sum is paid to discharge the charge, regardless of the purchaser,” it said.
The bank said it has appointed legal counsel to contest the suit, and its solicitors believe RHB has a strong defence against the claims and the interim injunction.
RHB also stated it does not anticipate any material financial or operational impact as a result of the proceedings.
The application for the interim injunction is scheduled to be heard on 20 May.
RHB shares closed five sen higher at RM6.64 on Tuesday, valuing the bank at RM28.95 billion.
