UOB’s loan fraud damages against Lippo Marina Collection quadruple to S$76.1 million
The bank was deceived into disbursing higher housing loans between 2011 and 2013
The Appellate Division of Singapore's High Court has increased damages awarded to UOB in its legal dispute against developer Lippo Marina Collection to S$76.1 million from the initial S$17.7 million. The higher sum was due to the bank's partial success in its appeal concerning fraudulent inflated prices of condominium units, which led UOB to grant higher housing loans.
Between 2011 and 2013, UOB provided housing loans to 38 purchasers of units in the Marina Collection development. Lippo had colluded with these buyers to artificially raise unit prices, deceiving UOB into disbursing loans based on the inflated price. As a result of the rebate scheme, UOB disbursed loans exceeding the actual purchase price, violating the loan-to-value limit.
Justice Woo Bih Li, who sat on the three-judge panel, noted that UOB could not deduct rental income and repayments from the damages, as these did not reflect the bank's actual losses. The court also awarded UOB interest on the additional damages, which amounted to approximately S$22.5 million. In total, the damages awarded by the court now total around S$76.1 million.
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