High Court proceeds with Duta Enclave assessment as Semantan Estate weighs secret settlement terms

KUALA LUMPUR, Aug 21 — The Malaysian government’s offer to compensate Semantan Estate (1952) Sdn Bhd for the disputed 106-hectare "Duta Enclave" remains on the table, despite the company yet to respond, according to a senior federal counsel. The government, seeking to resolve the long-standing land dispute, has yet to disclose the exact terms and financial value of its proposal.

The legal team representing the government is eagerly awaiting a definitive answer from Semantan, as the offer is seen as a strategic move to close the decades-long legal battle, reported FMT. Senior federal counsel Nurhafizza Azizan confirmed to reporters that they remain in the dark about Semantan's decision to accept or reject the offer, as their lawyers have not returned their calls.

Semantan had previously sought to postpone the hearing, but Justice Roslan Mat Nor denied their request, allowing the government to proceed with evaluating the compensation proposal. The landmark Court of Appeal ruling last year validated Semantan's entitlement to compensation based on the land’s valuation in 1956 and the inclusion of mesne profits for the loss of use.

The prime site, located along Jalan Tuanku Abdul Halim, currently hosts essential federal institutions, such as the Malaysian Anti-Corruption Commission Academy, the Inland Revenue Board, and the National Archives. The legal dispute began in 2003 when Semantan challenged the government's acquisition of the land, arguing that the acquisition was unlawful.

Although the Court of Appeal earlier declared that the land could not be returned due to the extensive infrastructure built upon it, the Federal Court's denial of leave for further appeal enabled the current compensation assessment to proceed. During today's proceedings, Semantan presented licensed property valuer Foo Gee Jen as their sole witness, who faced cross-examination by senior federal counsel Nurhafizza and Azza Azmi regarding his valuation methodology from 1956.

The government's legal team challenged Foo's approach, particularly his reliance on comparable property values from the Batu Estate and bungalow lots in Bukit Tunku. Mesne profits assessment is underway in a separate hearing before High Court judge Ahmad Shahrir Salleh. Semantan's attorney, Ira Biswas, is also present in the case. The court has adjourned the hearing until Sept 1.