Selangor govt to appeal against court decision in LBCN Development case


  • Nation
  • Saturday, 12 Jul 2014

SHAH ALAM: The Selangor government is filing an appeal against a High Court decision to grant compensation to Alam Perdana housing developer, LBCN Development Sdn Bhd (LBCN), for acquisition of its land in Ijok to be based on the value of the land for integrated development.

Mentri Besar Tan Sri Abdul Khalid Ibrahim said in a statement that the State Legal Adviser had been instructed to file the appeal.

He said this was because the state government felt that the compensation for LCBN which had been agreed upon previously was adequate as it was based on an evaluation by the Valuation and Property Services Department for agriculture land with potential for development.

The state government, he said, could not compensate LBCN based on a fully developed status because the company had violated regulations and conditions set by the local government authority and provisions in the National Land Code 1965.

"LBCN has admitted its failure to pay the land premium, failure to convert the land status from agriculture to development and conducting development project illegally without the approval of the authority.

"Based on these facts, the company is not eligible to receive compensation more than what has been previously agreed to be paid by the state government," he added.

The Alam Perdana Township project involved development of low cost and terrace houses which had been abandoned since 2002, and as a result of that, the state government had to acquire the land because the settlers had surrendered the land to the developer to be developed, but the house buyers had yet to receive their houses.

Although the project was approved by the then state government, the status of the land from agriculture to development had not been changed due to the failure of the developer to pay premium for the land conversion.

The Selangor government took over the project from Syarikat Perumahan Negara Bhd (SPNB) and spent RM200mil to build the houses, repayment of bank loan and to provide other infrastructure.

The Shah Alam High Court ordered the compensation of the land owned by LBCN which was acquired by the state government to be valued based on integrated development. - Bernama


Subscribe or renew your subscriptions to win prizes worth up to RM68,000!

Monthly Plan

RM13.90/month

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Nation

MPV in crash where eight died was being pursued by cops
Melaka carrying out measures to protect residents from crocodile threat
Malaysia re-elected to Uncitral for 2025-2031 term
Malaysia, Vietnam elevate bilateral relations to comprehensive strategic partnership
Vehicles in viral video given summonses for parking too close to bus stop, Ipoh cops say
Eight people in MPV die in collision with 4WD in Sibu
Company director loses RM34,000 in scam to supply non-existent Agriculture Department order
Girl among three killed, baby hurt after family of four on motorcycle crash into lorry
Water levels at three major Kelantan rivers surpass alert levels
Scheduled water cuts to seven Penang Island areas Nov 28-29

Others Also Read