Tuesday 23 Apr 2024
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KUALA LUMPUR (Nov 10): Berjaya Land Bhd has won a judicial review application against the Selangor government and the Selangor Town and Country Planning Department (JPBD), paving the way for the relocation of the Selangor Turf Club (STC ) to Bukit Tagar, Sungai Tinggi.

In a filing with Bursa Malaysia today, Berjaya Land said the High Court ruled in its favour yesterday after hearing the application on Sept 29.

Berjaya Land and two related companies — Berjaya Tagar Sdn Bhd and Berjaya City Sdn Bhd (BCity) — had initiated the legal action against the Selangor government, JPBD and six other state agencies in March 2016.

The court ruled that the cause of action does not involve the six other agencies, said Berjaya Land.

But in the case of the Selangor government and JPBD, it ruled that they had failed to re-table the execution of the BCity project, and had acted unreasonably when they failed to have regard to all relevant considerations and disregard all improper considerations to re-table the execution of the project.

The court ruled that the two parties' action had resulted in unfairness to Berjaya Land, Berjaya Tagar and BCity as it amounted to an abuse of power, said Berjaya Land.

The three companies are therefore allowed to continue with the development and construction of the turf club and equestrian centre.

The court also allowed for compensation to be paid to the three companies by the Selangor government and JPBD. The amount will be assessed in subsequent proceedings.

In 2004, Berjaya Tagar had entered into an agreement with STC for the acquisition of three parcels of leasehold land measuring a total of 245 acres in Sungai Besi for RM640 million, of which RM35 million will be paid in cash and the balance of RM605 million will be satisfied by a transfer to STC of 750 acres of land in Bukit Tagar with a newly built turf club.

Berjaya Tagar had proposed to acquire the Bukit Tagar land from BCity, a subsidiary company of Berjaya Corporation Bhd, and to appoint BCity as the turnkey contractor of the new turf club.

However, Berjaya Land had not received the necessary approvals due to a change in the Selangor state government after the 2008 general election.

In 2005, a senior executive committee councillor had reportedly said that Selangor rejected the relocation of the turf club to Bukit Tagar, as it would promote gaming in the state.

The Edge had reported in 2013 that the long delay is expected to cost Berjaya Land more to undertake the project — from the estimated RM605 million previously to RM1 billion.

Berjaya Land's share price closed down 0.5 sen or 1.1% today at 46 sen, for a market capitalisation of RM2.2 billion.

 

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