“Govt buildings built on private land?” - The ‘Duta Enclave’ land dispute and its serious repercussions explained
We may have just seen the penultimate end to one of the longest-standing civil land disputes in our nation’s history and it’s not good news for the Malaysian Government.
This is after the High Court granted the application by the liquidator of Semantan Estate (1952) Sdn Bhd to have a 263.27-acre land in Mukim Batu in Kuala Lumpur and Selangor named the “Duta Enclave” to be transferred back to the company.
This decision is particularly noteworthy because it is currently occupied by several government agencies and complexes, including the Inland Revenue Board, the Malaysian Anti-Corruption Commission Academy, the National Archives, the Tun Razak Hockey Stadium and rather ironically, the Malaysian Institute of Integrity.
So, what is this land dispute case all about and what implications will it bring forth? Well, join us as we break it down below.
The Duta Enclave land dispute has been ongoing since before Merdeka
As per a report by Malay Mail, this long-standing dispute has its roots in 1956 when the Government initiated a land acquisition in the area and transformed it into what is known today as the Duta Enclave.
However, this acquisition has been disputed in a series of court rulings since 2009. In fact, the Government’s claim of ownership over the 263.27-acre land has consistently been rejected.
In 2003, the Semantan Estate filed a lawsuit against the Government for encroachment following an unauthorised land seizure.
In 2009, the High Court ruled that the liquidator of Semantan Estate was the rightful owner of the Duta Enclave, rather than the Government. Accordingly, Judicial Commissioner Zura Yahya ruled that Semantan Estate had retained its beneficial interest in the 263.27-acre land, which had been unlawfully possessed by the government and subjected to trespass.
The Government then filed an appeal but it was struck out on 18 May 2012. Afterwards, on 21 November 2012, the Federal Court denied the Government’s application for leave to appeal the decision.
In 2018, the Government’s application to review the decision was once again dismissed by the Federal Court.
Approximately 1 year prior in February 2017, Semantan Estate initiated a lawsuit against the Registrar of the Federal Territory of Kuala Lumpur Land to enforce the 2009 High Court judgement.
The latest decision by the High Court regarding the land dispute
This brings us to the most recent High Court judgement on 7 August, whereby the application by Sementan Estate to transfer Duta Enclave back to the company was granted.
High Court Judge Datuk Ahmad Shahrir Mohd Salleh thus ordered the defendants to carry out the terms sought within 3 months from 7 August and allowed the liquidator of Semantan Estate to take possession of the land within the same period.
Furthermore, the Government was also ordered to pay costs of RM50,000 to the plaintiff, as well as do the following:
Register the liquidator of Semantan Estate as the official owner of the land, free of encumbrances
Complete all necessary legal paperwork to transfer the land ownership.
Issue a new land title in the name of the liquidator
Return physical possession of the land to the liquidator as the rightful owner
The court also dismissed the Government’s application for a stay of execution pending its proposed settlement of the land dispute.
However, the liquidator’s request for mesne profit damages (damages awarded to a landowner for the unlawful occupation of their land by another person) for the period of unlawful occupation is still under consideration and not part of this current ruling.
Implications from the latest High Court decision
So, what is the repercussion of this ruling for the Government and all the Government buildings at the Duta Enclave?
Well, once the land titles have been transferred to the liquidator of Semantan Estate, the Government will be considered as trespassing on the land and consequences of damages may occur.
However, do note that the court didn’t order vacant possession of the land or for the land to be restored to its original state prior to the Government’s development. Moreover, no mechanics of what is to be done were prescribed, leaving it to the parties in the dispute to resolve them.
With that in mind, as the rightful land owner, Semantan Estate has the right to clear the Government buildings if they wish so or allow them to stay but impose rent, should both sides agree to such an arrangement. A lease for the land where the Government buildings are located may also be set up, which all things considered, could be one of the more practical solutions that would benefit both sides.
Beyond that, this decision may set up a precedent for similar land disputes, which Prime Minister Datuk Seri Anwar Ibrahim feared could descend the country into chaos. As reported by Bernama, Anwar said that while the Government respected the court’s decision, he is proposing to the Cabinet to relook into potential law reviews.
The Prime Minister provided several examples of how the ruling might affect other land dispute cases, such as people’s lands taken for Government purposes before or after Independence and then taken over by the private sector or private sector that buys agricultural land and then converts it to industrial land.
The Government has since filed an appeal against the High Court decision and also proposed a settlement with Semantan Estate regarding the land dispute.
Moving forward, all eyes will be on the appeal to this long-standing land dispute and how it would affect other similar cases in the future. The Government’s potential review of land laws is also something to look out for and definitely a matter of public interest.
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