PUTRAJAYA: The Court of Appeal will hear the highly anticipated Duta Enclave land dispute between the government and Semantan Estate (1952) Sdn Bhd regarding compensation rights for the 106-hectare plot of land today.
A three-judge panel, led by Datuk Lee Swee Seng, had, on Nov 7 last year, directed both parties to determine the value of the land, which the government had previously estimated to be around RM5 billion.
However, the amount was disputed by the company’s liquidator, who claimed that the land’s current value was RM12 billion.
Lee, who sat alongside Datuk Azimah Omar and High Court judge Datuk Wan Ahmad Farid Wan Salleh, also directed both parties to argue on three legal questions surrounding the compensation dispute.
The court said parties must argue whether Section 29(1)(b) of the Government Proceedings Act 1956 and Section 8 of the Specific Relief Act 1950 are unconstitutional and conflict with Article 13 (Right to Property) of the Federal Constitution, among other issues.
Under Section 29(1)(b), in any civil case against the government, the court can make any decision within its authority, except it cannot order the government to return land or property taken from a plaintiff.
However, the court can declare that the plaintiff has rights to the land or property.
Section 8, meanwhile, states that a person whose property was taken without consent may recover their assets, but this action cannot be filed against any government in Malaysia.
Article 13, however, ensures that no one can be deprived of their property except according to the law and with fair compensation.
On Oct 30, 2024, Prime Minister Datuk Seri Anwar Ibrahim, responding to a question from Kota Baru member of parliament Datuk Seri Takiyuddin Hassan in Parliament, said that the government disagrees with providing substantial compensation to the company.
He also said that the previous government’s RM5 billion compensation offer to resolve the Duta Enclave issue was unreasonable, excessive, and too high.
He added that the treasury secretary-general had held meetings with the company to find a resolution, which included a proposal to allocate part of the vacant land to the company for development on the condition that they collaborate with a government-linked company.
The government originally acquired the land in 1956 for RM1.32 million under the then-Land Acquisition Enactment with the intention of developing a diplomatic (Duta) enclave.
However, the land’s original owner, Semantan Estate (1952) Sdn Bhd, founded by Eng Lian Group and Ng Chin Siu & Sons Rubber Estates Sdn Bhd, disputed the acquisition.
The land currently contains several government buildings, including the former National Hockey Stadium, the National Tennis Complex, the Institute of Islamic Understanding Malaysia, the Federal Territory Mosque, the National Archives, and the Inland Revenue Board Complex.
Source: NST, viwed by 20 February 2025