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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 BCity Project and the equestrian centre following the Shah Alam High Court’s judgment in its favour.

In a filing with Bursa Malaysia today, BLand said the application for judicial review, which was heard on Sept 29, 2017, was decided by the High Court in favour of the applicants, namely BLand, Berjaya Tagar Sdn Bhd (BTSB) and Berjaya City Sdn Bhd (BCity).

The judgment was rendered by the High Court yesterday (Nov 9) and is pending receipt of the official grounds of judgment and fair order of the High Court.

Based on the notes of proceedings, the High Court ruled that the applicants 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 had failed to re-table the execution of the BCity Project.

It said that 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 as it is tantamount to abuse of power.

The High Court ordered that the applicants be 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 Selangor Turf Club (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 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 by the Selangor state government and Selangor town and country planning department. The compensation amount will be assessed in subsequent proceedings.

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.

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.

In March 2016, BLand instituted legal action against the Selangor state government and the relevant state agencies by way of an application for judicial review, after the parties failed to proceed with the approval process and procedures in order for BTSB to fulfill the CPs, despite several applications and requests.


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