KUALA LUMPUR – A local government expert has yet again questioned the government’s use of the Land Acquisition Act (LAA) 1960 to oust landowners, as Kg Sg Baru residents face the looming threat of eviction to make way for a multi-billion ringgit redevelopment project by a private company.
Speaking to Scoop, lawyer Derek Fernandez reiterated that Section 3(1)(c) of the LAA, which was used by the government to take control of Kg Sg Baru land in 2021, must be read with other sections of the legislation for eviction orders to be legally viable.
Failure to do so, he said, would raise doubts over whether residents are compelled to adhere to eviction notices issued by the Kuala Lumpur Land Administrator on various occasions, the latest of which ordered landowners to vacate their homes by October 19.
Section 3(1)(c) states that the state authority can acquire land that is needed for the purpose of “mining or for residential, agricultural, commercial, industrial, or recreational purposes, or any combination of such purposes”.
“The section in question must be read in tandem with Section 3(2), which states that an application for the acquisition of any land under paragraph (1)(b) or (c) shall be made in writing to the land administrator in the form as prescribed in the rules under the LAA,” Fernandez said in citing the law.
Subsection (2) is referenced in Section 3(6), which stipulates that if there is a development approval granted to the registered proprietor in respect of any land applied for under the subsection and the acquisition is not for the purpose of public utility, the state authority shall not consider the application.
“This means that if there is already an established development (in the form of) existing houses on the land, then land acquisition (by the government) can only be done for the purpose of developing public utilities, nothing else,” he said.
“The issue in Kg Sg Baru now is that residents already have existing approved properties on their lands. Thus, it’s clear that the (land acquisition) notice under Section 3(1)(c) is legally incorrect.
“The land was not acquired for the purpose of developing public utilities but was instead given to a developer (for a luxury project). In my opinion, the interpretation of the law is clear.”
In May last year, Fernandez argued that while Kg Sg Baru is not Malay Agricultural Settlement Land, the LAA must still be lawfully exercised as a last resort where necessity demands its use for a greater public purpose and interest.
He had also cited Article 13 of the federal constitution, which highlights how a property owner should not be deprived of their property unless there is strict compliance with the law and adequate compensation.
A statement by the Federal Territories Land and Mines Office in June of the same year on the continuation of the project by private developer Ritzy Gloss Sdn Bhd confirmed that the Kg Sg Baru land acquisition was conducted under Section 3(1)(c).
The use of the LAA came after Ritzy Gloss’ application for the law was approved by then-federal territories minister Tan Sri Annuar Musa under the Perikatan Nasional government.
The decision has been the target of certain residents’ ire, with some claiming that the interests of private developers have been prioritised over citizen welfare.
The Prime Minister’s Department, now led by Prime Minister Datuk Seri Anwar Ibrahim, oversees federal territory matters.
Meanwhile, Land Professionals Association of Malaysia president Professor Ismail Omar asserted that a social impact assessment (SIA) evaluation should have been conducted first before the LAA was enforced.
“The SIA will contain details on how long the project will take, how much compensation (will be paid to landowners), and the effects residents might face after the sale (of their lands). However, this has yet to be done.
“More importantly, the SIA will ensure that the compensation (offered by developers to landowners) is adequate and agreed on by all relevant parties,” he told Scoop.
He also said that political will is needed to achieve a win-win solution for developers and residents, as the ongoing issues in the area have been mired by politics from the get go.
It was previously reported that Kg Sg Baru residents were dissatisfied with the approximately 310% difference in compensation offered by the Lands and Mines Office as compared with private valuations.
In one case, a resident’s flat was valued at RM470 per sqft by the Finance Ministry’s Valuation and Property Management Department, while an independent assessor said the flat should be worth RM1,480 per sqft.
On September 5, landowners were served with an eviction notice from the Kuala Lumpur Land Administrator ordering them to vacate their homes by October 4, as they were found to be illegally residing on government land.
Anwar’s political secretary, Azman Abidin, then told Scoop that the eviction was delayed until October 31.
However, on Thursday, October 5, residents received another eviction notice informing them that they have until October 19 to pack their belongings and move out of their houses.
Scoop previously spoke with Kg Sg Baru residents, former federal territories minister Khalid Samad, and a lawyer representing the Kg Sg Baru Terrace Homes and Flat Owners Action Committee on the ordeal in the Malay enclave. – October 17, 2023