Duta Enclave: Court told RM1.39m payout to Semantan Estate was more than adequate

KUALA LUMPUR, September 1 — The High Court was told today that the RM1.39 million in compensation paid by the Government of Malaysia to Semantan Estate (1952) Sdn Bhd for the acquisition of 263.272 acres of land, known as the Duta Enclave, in 1956 was more than adequate.

Ministry of Finance, Valuation and Property Services Department assistant director Tan Tat Khuan, 40, stated that his analysis found the sixth comparable property, Lot 1348, Mukim Kuala Lumpur, to be the most suitable benchmark, as it shared similar characteristics, namely being freehold agricultural land.

“I have prepared an expert valuation report to determine adequate compensation, in accordance with the Court of Appeal Order dated June 24, 2025, which, among others, fixed the valuation date for determining compensation for the said land as December 3, 1956.

“After adjusting for factors such as time, location, stratum, accessibility, development potential, size, shape and topography, the adjusted rate for the sixth comparable property was $3,320 per acre.

“Taking into account the land area of 263.272 acres, the total market value determined was $875,000, equivalent to RM875,000,” he said in his witness statement during the Duta Enclave compensation assessment hearing before Judge Roslan Mat Nor.

The “$” symbol in the valuation denotes the Malayan dollar, which was the legal tender in 1956 and stood at par with the Malaysian ringgit.

Tan clarified that should the court adopt the total freehold area of 700.75 acres as the basis for valuation, adjusted proportionately to the acquired land area of 263.272 acres, the compensation he recommended under Valuation Basis 1 would amount to $875,000, equivalent to RM875,000.

“Given that the government had previously paid compensation of $1,390,602.70 (in 1956) to the plaintiff (Semantan Estate), that amount exceeds the compensation I recommended under Valuation Basis 1.

“Therefore, in my view, the compensation already paid to the plaintiff was more than adequate, and no additional compensation ought to be considered by the court,” he said.

Tan said that upon reviewing the report prepared by the plaintiff’s expert witness, Foo Gee Jen, who acted as valuer for Semantan Estate, he found that all the comparables relied upon pertained to small bungalow plots, whereas the subject land constituted a sizeable agricultural parcel with residential development potential.

He added that three of the comparables involved transactions post-dating the valuation date and could not be considered, in accordance with Paragraph 1C of the First Schedule to the Land Acquisition Act 1960.

He also observed that the plaintiff’s expert had failed to account for factors such as accessibility, land use and the increase in value of the remaining land resulting from the acquisition.

Tan further submitted that the claims for severance and injurious affection advanced by the plaintiff’s expert were also unfounded, irrelevant, unsustainable and ought not to be considered by the court.

“Based on my assessment, the report prepared by the plaintiff’s expert is unreasonable and lacks a solid basis to be relied upon by the court. As such, I recommend that the court reject the said valuation report,” he said.

The hearing continues on October 16.

On November 13, 2025, the Federal Court dismissed Semantan Estate’s application for leave to appeal against the Court of Appeal’s decision that the Registrar of Titles of the Federal Territory was not required to register the 263.272-acre land in the Duta Enclave in the company’s name.

Accordingly, the Court of Appeal’s decision in favour of the government stands and the case was subsequently remitted to the High Court for hearing on the assessment of damages.

On June 24, 2025, the Court of Appeal ruled that Semantan Estate was not entitled to ownership of the said land, but the company was entitled to adequate compensation based on the value of the land in 1956, when it was acquired by the government.

The land, situated at the prime location of Jalan Duta, currently houses, among others, the Inland Revenue Board complex, several government buildings, the National Hockey Stadium, Institute of Islamic Understanding Malaysia and Federal Territory Mosque.

In 2003, Semantan Estate filed a suit against the government, alleging trespass arising from the unlawful acquisition of the land from the company.

In 2009, Judicial Commissioner Zura Yahya ruled that Semantan Estate retained its beneficial interest in the 263.27-acre land, and that it had been unlawfully acquired and trespassed upon by the government. — Bernama