Sime Darby Property ordered to refund RM36.23 mil excess land acquisition compensation

PETALING JAYA (July 21): The High Court has directed Sime Darby Property Bhd’s wholly-owned subsidiary, SDP Klang Sdn Bhd, to refund RM36.23 million to the Malaysian Highway Authority (LLM), representing excess compensation paid for the compulsory acquisition of land for the West Coast Expressway.

The developer said in a Bursa Malaysia filing today that the High Court had determined the consequential matters arising from its earlier decision in the land reference matter, ordering SDP Klang, within three months from July 20, to refund RM36,234,459.45, representing the excess compensation paid in respect of the compulsory acquisition of seven plots of land in Bukit Raja, Klang, Selangor.

The court also ordered SDP Klang to pay interest on the judgment sum at 5% per annum from Monday (July 20) until full payment is made.

No order was made as to costs, while the assessors' fees of RM1,500 each for the government assessor and private assessor are to be borne by LLM.

Sime Darby Property said the full written grounds of judgment had yet to be issued by the High Court as at the date of its Bursa Malaysia filing.

According to the filing, the pre-tax financial impact arising from the consequential orders will be limited to the RM36.23 million judgment sum and the applicable interest awarded by the High Court. It added that the decision is not expected to have any material operational impact on the group.

The company said it is assessing the High Court's decision, including all available legal options, and will make further announcements should there be any material developments in the land reference matter.

Read also:
Sime Darby Property’s RM78.6 mil compensation overturned by court

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