UOB’s award against Lippo rises again to $82.4 million after court corrects judgment

SINGAPORE - UOB’s award against Indonesian developer Lippo Marina Collection (LMC) has risen again, from $76.1 million to about $82.4 million, after the Appellate Division of the High Court corrected an omission in its August judgement.

The latest change adds about $6.4 million in interest that was left out when Justice Woo Bih Li raised UOB’s award from $17.7 million to $76.1 million on Aug 24.

The High Court had in 2022 found LMC, a unit of Lippo Group, liable for using unlawful means in a conspiracy with property agents to mislead the bank into disbursing inflated housing loans between 2011 and 2013 to 38 buyers of units at Marina Collection.

The conspiracy resulted in UOB losing a large amount of money after it disbursed about $182 million in inflated home loans, financing more than 100 per cent of the purchase prices of the high-end apartments.

The 124-unit Marina Collection in Sentosa Cove was developed and sold by LMC.

The High Court had initially awarded UOB $17.7 million in July 2025 for the bank’s losses.

The award was increased to $76.1 million on Aug 24 after UOB, represented by a legal team led by Eddee Ng of TKQP Law, successfully challenged the earlier calculation, which had deducted mortgage repayments and rental income received by the bank when assessing its losses.

LMC is represented by Senior Counsel Siraj Omar of Siraj Omar LLC.

In an updated judgement, the court amended the UOB’s award to $82.4 million. The sum was increased to address some errors discovered after Aug 24, noted the judgement.

Lawyers for both parties were informed of the updated sum in a letter from the court, which has the jurisdiction and power to amend a court order or judgement that had already been issued.

In response to queries from The Straits Times, the police said separately that it had concluded investigations into Lippo Group over an alleged offence of cheating and decided to take no further action on the matter.

“After careful consideration of the facts and circumstances of the matter, the Police, in consultation with the Attorney-General’s Chambers, have taken no further action on the matter,” said its spokesman.

The criminal investigation is separate from the civil lawsuit in which the High Court had found LMC liable for conspiring with the property agents to mislead the bank into disbursing inflated housing loans.

UOB had sought to recover $92 million in losses or $76 million in alternative scenarios.

The first scenario is on the basis that UOB would have given no loans. The second scenario is on the basis that UOB would have extended some loans but up to the cap imposed by the Monetary Authority of Singapore.

Marina Collection saw strong sales when it was launched for sale around December 2007. But after a series of property cooling measures introduced by the Government in 2009, sales fell from 30 units sold between December 2007 and June 2008 to just nine units for the whole of 2010.

For subsequent purchases, the developer gave purchasers substantial “furniture rebates”, of 22 per cent to 34 per cent which were used to offset the cash payments required for the purchases. These rebates were not disclosed to UOB, while the purchase documents showed higher prices.

This resulted in the bank granting larger loans than it otherwise would have. The excess amounts were paid to the buyers, giving each of them a significant cash benefit from the purchases.

At the time, banks were allowed to lend up to 80 per cent of the purchase price of a residential property.

UOB’s loans exceeded the cap based on the inflated purchase prices.

All 38 buyers eventually defaulted on their loans.

In a reply to The Straits Times, a UOB spokesman said the bank assesses housing loan applications based on many factors, including transaction and valuation documents provided by the borrower in relation to the purchase.

The spokesman highlighted safeguards after the transactions, including 2015 rules requiring developers to disclose the value and details of rebates, discounts and other benefits that are given to purchasers.

“UOB’s processes and controls remain robust and secure,” said the spokesperson, adding that the bank would continue reviewing them to ensure their effectiveness.