Jalan Duta land: Buildings may change ownership or government must pay rent

SHAH ALAM - The government might need to pay mesne profit to Semantan Estate Sdn Bhd (Semantan Estate) following the acquisition of the company's land in 1956.

Property lawyer Mohd Norzaki Yusop said the payment amount was expected to be calculated from 1956 to 2021, amounting to billions of ringgit.

He said mesne profit referred to the rent that the trespasser must pay to the actual owner while occupying a premises as compensation.

"In 1956, it is said that the government acquired the area for RM1.32 million under the Land Acquisition Enactment at that time, to develop the area (Duta Enclave).

"The plaintiff's valuation of mesne profit from 1956 to 2021 amounts to between RM3.1 billion and RM6.646 billion with simple interest, while RM13.242 billion with compounding interest.

"However, the government disputes this calculation of mesne profit and only agrees to a value of RM290 million," he told Sinar.

Norzaki explained that Semantan Estate has the right to take action if the government failed to return the land.

He added that the existing buildings might change ownership or the government would have to pay rent to continue their operations in the area.

"In my opinion, if the government fails to return the land, Semantan Estate will obtain a court order," he said.

It was reported that the Kuala Lumpur High Court yesterday allowed the originating summons by Semantan Estate for the land to be transferred to the company.

The 263.27 acres were acquired by the government in 1956 to be transformed into what they called the "Duta Enclave” which currently houses government buildings that include the Tun Razak hockey stadium, the Malaysian Institute of Integrity, the National Archives, the Kuala Lumpur Syariah Court, the Inland Revenue Board building and the Malaysian Anti-Corruption Commission Academy.

Judge Datuk Ahmad Shahrir Mohd Salleh in his decision ordered the defendant (Registrar of the Federal Territory of Kuala Lumpur Land) to carry out the terms sought within three months from the date of judgement (yesterday).

The court also ordered the defendant to register the plaintiff (Semantan Estate) as the proprietor of the land, to execute of the all instruments of transfer and issued document of title to the land free of encumbrances and liabilities in the name of the plaintiff.

In 2003, Semantan Estate filed a suit against the government for trespassing, arising out of the unlawful acquisition of the land from the company and in 2009, High Court judicial commissioner Zura Yahya ruled that the Semantan Estate retained its beneficial interest in the 263.27 acres of the land which the government had taken unlawful possession of and trespassed on the land.

The government then appealed to the Court of Appeal but its appeal was dismissed on May 18, 2012.

On Nov 21, 2012, the Federal Court also rejected the government's application to seek leave to appeal against the decision.

The Federal Court in 2018 also denied the application by the government to review the earlier Federal Court ruling.

In February 2017, Semantan Estate filed an originating summons against the Registrar of the Federal Territory of Kuala Lumpur Land to enforce the judgment by the High Court in 2009.

The government had also proposed settlement over the land dispute.