Malaysia

S’gor’s alleged failure to make land acquisition payments sparks legal battle

Firm claims it has dealt with state authorities’ non-responsiveness for five years

Updated 3 years ago · Published on 03 Jul 2023 7:00AM

S’gor’s alleged failure to make land acquisition payments sparks legal battle
According to a Pristine Power Sdn Bhd spokesman, the company initiated a judicial review action at the Shah Alam High Court against the Gombak Land Administrator and the director-general of the Land and Mines Department (Selangor) after failing to receive a RM11.2 million payment for compulsory land acquisition. – The Kuala Lumpur Bar Committee pic, July 3, 2023

by Arjun Mohanakrishnan

JOHOR BARU – Two Selangor state authorities have been accused of failing to make payments related to land acquisition despite a high court order compelling them to do so.

According to a Pristine Power Sdn Bhd spokesman, the company initiated a judicial review action at the Shah Alam High Court against the Gombak Land Administrator and the director-general of the Land and Mines Department (Selangor) after failing to receive an RM11.2 million payment for compulsory land acquisition.

The judicial review application, filed by Pristine Power in September 2020, stated that the company was awarded RM11.2 million on October 17, 2018, as compensation for part of its land located in Bandar Ulu Kelang, Gombak.

However, despite letters from the company demanding payment for the sum, the respondents failed to reply and make the necessary payment until July 1, 2020, when the director-general of the Land and Mines Department (Selangor) issued a letter to the chief secretary to the Works Ministry and the Malaysian Highway Authority to request immediate payment to Pristine Power.

The company said that the respondents’ actions in the case failed to comply with Sections 29 and 32 of the Land Acquisition Act 1960, which require payment of compensation to land owners as soon as may be, failing which late payment charges must be paid.

On September 23, 2021, the Shah Alam High Court declared that both respondents did indeed contravene Sections 29 and 32, additionally issuing a mandamus order to compel the Gombak Land Administrator and the director-general of Land and Mines (Selangor) to pay the RM11.2 million compensation to Pristine Power, with 5% late charges calculated annually from February 2019.

Based on the court order, both respondents were required to make the payments within 14 days of the judgement.

“The court order was given in August 2022, and the court order stated they had 14 days to pay, but they never paid,” the spokesman said.

Five-year ordeal

Additionally, given the difficulty of enforcing the court judgement against a government body, the company mentioned that they had no choice but to apply to the court for a certificate under Section 33 of the Government Proceedings Act 1956.

Under the provision, the certificate would allow the company to enforce the judgement against a government body and obtain compensation.

According to Pristine Power’s spokesman, the court issued the certificate to the company two weeks ago.

“The state should be aware of fulfilling their statutory duties.

“We are upset…the company has been going through this for five years.

“We have to hire lawyers, and they are expensive,” the spokesman added.

According to the company, the compulsory land acquisition was done for the purpose of facilitating the controversial East Klang Valley project.

Last year, The Vibes reported that the Taman Sering Ukay Residents’ Association filed protest letters to the Malaysian Highway Authority to evaluate the project and ensure all safety standards were followed.

The resident’s association explained that the design of the highway, which was too sharp and narrow for vehicles, could lead to accidents, putting the residents there at risk. – The Vibes, July 3, 2023

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