Govt proposes settlement with Semantan Estate over Duta Enclave dispute

The Malaysian government has extended a settlement offer to Semantan Estate (1952) Sdn Bhd in an effort to resolve a longstanding pre-independence land dispute over the Duta Enclave. Senior federal counsel Nurhafizza Azizan made the announcement during a compensation assessment hearing before judge Roslan Mat Nor. The offer, which requires approval from the Finance Ministry, aims to settle the case as soon as possible, but Semantan may need time to consult with their client before accepting the terms.

The terms of the settlement were not disclosed in court. Semantan's legal battle began in 2003 when it sued the government, alleging the unlawful acquisition of a 106-hectare parcel in Kuala Lumpur in 1956. The land currently houses several major government complexes, including the Inland Revenue Board headquarters and the National Archives.

Despite a High Court ruling in Semantan's favor in 2009, subsequent appellate decisions ruled against the company's entitlement to the land title. In June 2022, the Court of Appeal ruled in Semantan's favor, ordering an assessment of mesne profits. However, the Federal Court dismissed Semantan's appeal in November 2022, leaving the Court of Appeal's decision in place and paving the way for the current compensation proceedings.