Berjaya Land's BCity Project to resume following High Court decision

PETALING JAYA: Berjaya Land Bhd (BLand) will resume the development and construction of the new turf club and equestrian centre in Sungai Tinggi, after the Shah Alam High Court ruled in its favour, following a judicial review.

In a filing with Bursa Malaysia last Friday, BLand said the High Court found in favour of BLand, Berjaya Tagar Sdn Bhd (BTSB) and Berjaya City Sdn Bhd (BCity), via a judgment on Thursday which is pending official grounds of judgment and fair order of the High Court.

BLand, BTSB and BCity in March 2016 instituted legal action against the Selangor state government, and seven other state agencies for failing to proceed with the approval process and procedures for the transfer of 750 acres land in Sungai Tinggi with a newly built turf club (STC proposals) as part of a deal with the Selangor Turf Club (STC), despite several applications and requests for them to do so.

To recap, BLand had on July 19, 2004 announced that BTSB had entered into a conditional sale and purchase agreement (SPA) with STC to buy 244.79 acres of leasehold land in Sungai Besi together with existing buildings erected thereon for RM640 million.

The RM640 million was to be settled by RM35 million cash and the balance RM605 million to be satisfied by transfer of 750 acres of land in Sungai Tinggi with a newly built turf club thereon (STC proposals).

BTSB proposed to buy the Sungai Tinggi land from BCity and to appoint BCity as the turnkey contractor of the new turf club known as BCity Project.

On June 28, 2010, BLand said some of the conditions precedent (CP) under the SPA were unfulfilled, including the approval for the master layout plan for the Sungai Tinggi land, which was obtained on Feb 11, 2008, but had to be re-tabled due to the change in the Selangor state government.

Based on the notes of proceedings dated Nov 9, 2017, the High Court ruled that BLand, BTSB and BCity had a legitimate expectation that the site would be constructed and developed for the BCity Project, and that the Selangor state government and Selangor town and country planning department failed to re-table the execution of the BCity Project.

It said the two respondents had acted unreasonably when they failed to have regard to all relevant considerations, and disregarded all improper considerations to re-table the execution of the BCity Project, which resulted in unfairness to the applicants, tantamount to abuse of power.

The High Court ordered the applicants allowed to continue with the development and construction of the BCity Project and the equestrian centre, but have to submit the comments by the technical departments to the relevant parties, who will revert with their response/feedback within three months, failing which the relevant departments are deemed to have no objection to the development.

In respect of the STC proposals, the Selangor state government and Selangor town and country planning department have been ordered to re-table its relocation and construction to the National Physical Planning Council within three months upon receipt of the proposal from the applicants.

“The applicants (BLAnd, BTSB and BCity) shall submit the said proposal within three months upon receipt of the fair order, failing which the applicants are deemed to be no longer interested in carrying out the said proposal,” it said.

The High Court also allowed for compensation to be paid to the applicants, however the compensation amount will be assessed in subsequent proceedings.