KUALA LUMPUR (Oct 26): In one of the long-standing land disputes since Independence, following an acquisition under the National Land Code which the courts have declared as trespassing, the prime land of Semantan Estate (1952) Sdn Bhd in Mukim Batu here is said to have gained total profit of RM3.1 billion between 1957 and 2021, according to estimates by a valuer.
The 263.72-acre (106.72-hectare) land now encompassing the National Archives, the government offices of the Inland Revenue Board, the Tun Razak hockey stadium, the Segambut roundabout, the Malaysian Anti-Corruption Commission academy (MACA), the Shariah Court and the Wilayah mosque was acquired more than 60 years ago in 1956.
On Tuesday (Oct 25), Semantan Estate liquidators began their claim against the Federal Government for wrongful possession of the land, and claiming for mesne profits.
The land was acquired at a cost of RM1.32 million.
Mesne profits according to the claimants are “the rents and profits which a trespasser has, or might have, received or made during his occupation of the premises, and which therefore he must pay to the true owner as compensation for the tort which he has committed”.
CBRE-WTW chairman Foo Gee Jen began his testimony, and said that based on his study, total profit gained from 1957 to 2021 was RM3.1 billion.
This, he said, was based on the valuation done for every five-year period from 1957, where he said since 2010, two new buildings were erected on the land, namely the Syariah Court and the MACA.
This, he added, had increased the value of the profit that is being claimed.
However, it remains to be seen whether the witness' classification of total profit of RM3.1 billion is considered mesne profits, as Foo had yet to finish his testimony.
Contrasting mode of calculation
Foo said the land had been subdivided into 38 lots, where all the lots are placed under the Federal Lands Commissioner, and out of that, nine lots have remained vacant.
“Twenty-nine of these lots already have buildings on them,” he said.
Foo, 59, the first witness in the claim, also contrasted his valuation method with that done by the Valuation and Property Management Department (JPPH), which had given a lower estimate of mesne profits.
“JPPH did not make any adjustment with regard to its calculation, and it is not the best comparable mode to rely on,” the witness said, adding that the method of calculation was based on the Malaysian Valuation Standards.
The calculation of the defendant in this case (the Federal Government) was based on the entire land of 263.27 acres being vacant for the entire valuation period of 1957 to 2021.
Foo was testifying in Semantan Estate's assessment of mesne profits, following a High Court judgement in December 2009, which was in the company’s favour.
The attorney general, who represented the Government, appealed against the High Court's decision, but lost in the Court of Appeal in May 2012. Finally, the Federal Court upheld the High Court's decision in November 2012.
The apex court ruled that the Government had trespassed on the land when it acquired it in 1956 for a price of RM1.32 million under the then Land Acquisition Enactment for the purpose of developing a diplomatic (duta) enclave.
Subsequently, on Nov 22, 2018, the Federal Court, led by then Court of Appeal president Tan Sri Ahmad Maarop, dismissed the Malaysian Government's application to review the November 2012 decision.
Semantan Estate claimed it retained its beneficial interest in the 263.27 acres of land in Mukim Batu, which it alleged the Government had taken unlawful possession of, and that the Government should pay the company mesne profits as damages for trespassing, with the said damages to be assessed by the court.
The plaintiff was represented by Ira Biswas, along with Janet Chai Pei Ying and Christine Lay Kei Een, while the Government was led by senior federal counsel Mohammad Al Saifi Hashim.
The hearing is set to continue on Thursday before judge Datuk Ahmad Shahrir Mohd Salleh, with continued testimony from Foo.
To recap, Semantan Estate also filed an application for a judicial review in 2017, where the company wanted the ownership of the disputed land along Jalan Duta in Kuala Lumpur to be officially transferred to the company.
However, High Court judge Datuk Ahmad Kamal Md Shahid last year dismissed the judicial review application to reacquire the land, with no order as to costs.