Govt valuer: RM1.39 mil compensation for 'Duta Enclave' in 1956 more than adequate

KUALA LUMPUR (Sept 1) : A government valuation officer told the High Court on Tuesday that the RM1,390,602.70 compensation the government paid to Semantan Estate (1952) Sdn Bhd for the acquisition of 263.272 acres of prime ‘Duta Enclave’ land here was adequate and there should be no additional payments.

Tan Tat Khuan, 40, an assistant director at the Valuation and Property Services Department, said if the court accepts that the company owned the whole 700.75 acres, the compensation for the 263.272 acres acquired should be only RM875,000.

“Taking into consideration that the compensation paid to Semantan Estate was RM1,390,602.70  and the sum paid was in excess of what I calculated based on the Valuation base 1, hence, the sum paid is more than the compensation I suggested.

“Following this, in my view the compensation that should have been paid was more than appropriate and there should not be any more compensation paid,” he said in reply to questions from senior federal counsel Nurhafizza Azizan.

Tan said the valuer appointed by Semantan Estate, Foo Gee Jen, was wrong to take into account the prices of residential property surrounding the land, which was designated for agriculture at the time of the pre-Merdeka acquisition on Dec 3, 1956.

“I consider the private valuation not feasible and does not have a strong basis as three of the compared valuations, or comparables, are bungalow lots that were acquired after the acquisition date on Dec 3, 1956.

“This comparable transaction cannot be taken into consideration, in line with Paragraph 1C, First Schedule of the Land Acquisition Act 1960,” said Tan, who is a government court assessor for Kota Baru and Johor Baru.

Prior to this, Foo had testified that he found the best comparable market rate for the acquisition of the land was between RM5,879 and RM6,000 per acre.

Tan said his six comparables were transactions between 1955 to 1956 on plots closer to the subject land in question.

He said the furthest compared land was Tayton estate in Petaling district, and the closest were two plots in Kuala Lumpur at that time.

The government valuer had chosen two plots in Kuala Lumpur, three in Batu district and one in Petaling district as his comparable land transactions based on acquisitions in 1955 and 1956.

'Compensation should be capped at RM3,320 per acre'

Tan told the court that his findings indicated a price range of between RM910 and RM3,320 per acre, and that based on the views of noted valuer AA Wragg the best valuation would be RM3,320.

However, Semantan Estate’s counsel, Ira Biswas, raised an objection with presiding judge Roslan Mat Nor, saying that references to Wragg and AIG Harding’s report was hearsay and should not be taken into consideration.

Wragg was Malaysia's first chief valuer who had laid the groundwork for the nation's property valuation profession in the mid-1950s. His appraisal, known as the Wragg Report, remains a key historical reference for valuers.

Tan, however, said the six comparable land transactions cited in in his report were the best.

“It is based on factors such as time, location, layer, access, development potential, size, (and) geographic and physical factors.

“It is valued at RM3,320. And taking into consideration the subject land at 263.271 acres, the best market price at that time was RM875,000,” the witness said.

Valuation follows June 2025 appellate court decision

The Court of Appeal ruled in June 2025 that it was not possible to handover the land to Semantan Estate due to the government buildings and infrastructure on it. However, it decided that the RM1.39 million compensation in 1956 was inadequate and ordered the High Court to determine the value according to the 1956 market rate. The hearing before Roslan is to determine this compensation.

In 2009, the High Court decided that the acquisition of the land in 1956 was illegal and that the government had trespassed. In 2017, Semantan Estate sought another court order for the return of the land based on the 2009 High Court ruling. The appelate court rejected this bid in June 2025.  

Another proceeding for mesne profit (compensation for illegal occupation of land) initiated by Semantan Estate is before another court.

The Duta enclave was initially acquired for embassies or foreign missions. It now consists of government buildings like the Inland Revenue Board headquarters, the National Examination syndicate, the National Archives, the Tun Razak national hockey stadium, the KL Shariah Court complex and the Jalan Duta interchange and roads.

Tan told the court the appellate court had directed that the compensation should be determined based on the First Schedule of the Land Acquisition Act 1960. The court further ruled that the comparisons should be made with similar transactions based on acquisition date, location, zone and size of the land.

Besides Nurhafizza, senior federal federal counsel Azza Azmi and federal counsel Nuur Zul Izzati Zulkipli appeared for the government, while Janet Chai Pei Ying and Alexie Ng Ying Ching along with Ira of Messrs Chooi & Co appeared for Semantan Estate.

The hearing before Roslan continues on Oct 16.

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