
“If we cancel the project, then 328 homeowners will be left homeless because their original dwellings are no longer habitable,” said Shahidan at an event.
However, he said the government is open to resolving the issue through the legal process.
Shahidan said his office was still studying the legal issues involved and will release a statement on the matter next week.

He said the project had already been delayed for six months.
On Wednesday, Kampong Bharu Development Corporation (PKB) said the land acquisition for the project must proceed because it had met all the legal requirements under the Land Acquisition Act.
PKB added that if the process was discontinued, the government must be prepared to bear all the losses incurred by the developer and the owners involved.
About 40 families in the area, which is within the historic Malay settlement of Kampung Baru, said in April that they had been given eviction notices but had been allowed to remain until July 31.
A majority are refusing to move on grounds that the settlement offered by the developer was unfair and that there had been no proper negotiations.
The place is the site of a major redevelopment project which will involve the building of 264 apartments and 64 terrace houses, on a 6.8ha site.
Stay current - Follow FMT on WhatsApp, Google news and Telegram