Lux outlines support plan for affected Marina Bay City buyers after Kinnara payment diversions
Lux Projects has confirmed it is preparing to assist buyers affected by payment diversions linked to Kinnara (K-I-N-N-A-R-A) at Marina Bay City, Lombok, Indonesia, following revelations that millions of dollars in client funds were paid to Kinnara instead of the project’s controlling entity.
According to Lux, a significant number of purchasers—now referred to as Kinnara clients—were diverted into contracts and bank accounts controlled by Kinnara, despite Kinnara no longer owning any land or holding any controlling interest in the project.
Lux says the land associated with those contracts is 100% controlled by Lux following the buyout, and that Kinnara does not have title to the land those clients believed they were purchasing.
Legal pathway to recover diverted funds
Lux has stated it is exploring a coordinated legal pathway, including a potential class action, to help affected buyers recover funds from Kinnara so those monies can be applied to the actual construction of their villas—ensuring innocent purchasers are not left stranded.
“Our intention is to help buyers recover what was taken from them and redirect it to where it belongs—into building their villas,” a Lux spokesperson said.
“However, Lux cannot and will not operate as a charity.”
Clear distinction between Lux clients and Kinnara clients
Lux emphasised that Lux clients are fully protected, having paid directly to Lux or its nominated project entities. Construction for those clients continues in line with contractual obligations.
By contrast, Lux says Kinnara clients face exposure because Kinnara has allegedly banked an estimated AUD $10 million in client funds while failing to fund or build a single villa within Marina Bay City.
Lux has made its position unequivocal:
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Lux will only build villas it has been paid to build
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Lux will not absorb construction costs for Kinnara’s clients
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Any villas for affected buyers can only proceed once diverted funds are recovered and paid into the proper project accounts
Call for accountability
Lux has urged Kinnara to return the diverted funds so impacted buyers can move forward without further delay. Until that occurs, Lux says it will continue to protect the integrity of the project, safeguard land ownership, and ensure that only properly funded villas are constructed.
The company reiterated that it remains open to assisting buyers through legal recovery efforts, but stressed that the responsibility for the missing funds rests squarely with Kinnara.
As the situation develops, Lux advises any buyer connected to Marina Bay City to verify contracts and payment details directly with Lux to ensure their investment is properly protected.