PUTRAJAYA has successfully overturned a court order requiring the transfer of over 106 hectares of prime federal land in Jalan Duta, Kuala Lumpur, to Semantan Estate (1952) Sdn Bhd (SESB), following a long-running legal dispute.
A three-judge panel led by Datuk Lee Swee Seng delivered the unanimous decision, ruling that the land — which includes the Inland Revenue Board (LHDN) complex, government buildings, the National Hockey Stadium, the Institute of Islamic Understanding Malaysia (IKIM), and the Federal Territory Mosque — will remain under government ownership.
While the Federal Court denied SESB’s cross-appeal for ownership transfer, it ordered that compensation be paid to the company, to be assessed by the Kuala Lumpur High Court within 90 days, with expert assistance.
In its 2003 claim, SESB had alleged unlawful acquisition of its land by the government. A 2009 judgment by Judicial Commissioner Zura Yahya ruled in favour of SESB, affirming its beneficial interest in the land and finding that the state had encroached upon it.
Although the government appealed, the Court of Appeal dismissed the challenge in 2012, and subsequent applications to the Federal Court for leave to appeal and a review of its decision were also rejected, in 2012 and 2018 respectively.
In February 2017, SESB initiated a fresh originating summons against the Federal Territory Land Registrar to enforce the 2009 judgment. This led to a High Court ruling on 7 August 2024, in which Judge Datuk Ahmad Shahrir Mohd Salleh ordered the land be transferred to SESB, and the government pay RM50,000 in costs.
The High Court also directed the Registrar to register SESB as the rightful owner and issue an unencumbered land title in its name, while rejecting the government’s application to delay proceedings pending a proposed settlement.
However, the latest ruling sets aside that order and reaffirms federal ownership — albeit with compensation due.
“The compensation sum is to be determined by the High Court in Kuala Lumpur within 90 days,” the court ruled. - June 24, 2025
