When land acquisition turns ugly
Billions are on the table should the government lose its appeal over prime Kuala Lumpur real estate.
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Last week, the government was compelled to return a prime tract of land in Kuala Lumpur to a private company, almost ending a 64-year-old row. Almost, because the Attorney-General’s Chambers is appealing the decision.
The Kuala Lumpur High Court on Wednesday ordered that 263.27 acres of land in Mukim Batu known as the so-called Duta enclave — an area sectioned off by the Jalan Duta road that houses a number of government complexes and facilities on each side — to be transferred back to owners Semantan Estate Sdn Bhd.
Originating in 1960, the suit arose because the government didn’t follow all the rules and procedures required when taking over private land. Specifically:
Missing Steps in the Process: The government failed to properly mark out and measure the land. This is like trying to buy a piece of land without first figuring out exactly where its boundaries are.
No Fair Hearing: When the government decides to take land, it’s supposed to hold a meeting where everyone with an interest in the land can speak up. This didn’t happen properly, especially for an additional 60 acres that the government decided to take later.
Mistakes: In 1958, the official in charge admitted that the process used to take the land was flawed. This admission became crucial when the case eventually went to court.
Today’s newsletter breaks down this long-drawn battle as it’s one with potentially wide-ranging consequences. It also shines a spotlight on the government’s attitude towards complying with court orders and two low-profile Chinese business families and their ownership of large tracts of land in the capital that are valued in the billions of ringgit today.