Malaysia
High Court proceeds with Duta Enclave assessment as Semantan Estate weighs secret settlement terms
Government buildings are seen in the Duta Enclave in Kuala Lumpur on July 24, 2024. — Picture by Sayuti Zainudin

KUALA LUMPUR, Aug 21 — Putrajaya’s offer to compensate Semantan Estate (1952) Sdn Bhd without a formal assessment exercise remains open, though the company has yet to provide a response, according to a senior federal counsel.

The offer, made on Aug 14, is a strategic attempt by the government to settle the decades-long dispute over the 106-hectare “Duta Enclave.”

While the specific terms and financial value of the proposal remain undisclosed, the legal team representing the government is still waiting for a definitive answer, FMT reported.

“We do not know whether they are accepting or rejecting the offer as their lawyers have not reverted to us,” senior federal counsel Nurhafizza Azizan told reporters following proceedings at the High Court today.

Last week, Semantan applied to postpone the hearing to evaluate the government’s proposal, but Justice Roslan Mat Nor rejected the application, allowing the assessment of compensation to proceed.

This comes after a landmark Court of Appeal ruling last year, which determined that the company is entitled to adequate compensation based on the land’s valuation at the time of its 1956 acquisition.

The appeals court also mandated an assessment of mesne profits — compensation for the loss of use of the property. The prime land, situated along Jalan Tuanku Abdul Halim, currently houses vital federal infrastructure, including the Malaysian Anti-Corruption Commission Academy, the Inland Revenue Board, and the National Archives.

The legal saga began in 2003 when Semantan sued the government, alleging unlawful acquisition. While the Court of Appeal previously ruled that the land could not be returned due to the extensive government infrastructure built upon it, the Federal Court’s refusal to grant leave for further appeal paved the way for the current compensation assessment.

During today’s proceedings, Semantan’s sole witness, licensed property valuer Foo Gee Jen, faced cross-examination by Nurhafizza and fellow senior federal counsel Azza Azmi regarding his 1956 valuation.

 The government’s legal team challenged Foo’s methodology, specifically his reliance on comparable property values from the Batu Estate and bungalow lots in Bukit Tunku.

The assessment of mesne profits is being handled in a separate hearing before High Court judge Ahmad Shahrir Salleh. Semantan is represented by lawyer Ira Biswas.

The court has adjourned the hearing until Sept 1.

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