Felda seeks return of 24 Jalan Semarak land parcels as KLVC trial opens
The High Court has begun hearing Felda's civil suit over the Kuala Lumpur Vertical City development, nearly seven years after it was filed. Felda and its investment arm seek to recover 24 land parcels along Jalan Semarak, alleging fraud and conspiracy by former chairmen, the master developer and oth
PETALING JAYA (Oct 7): The Federal Land Development Authority (Felda) and its investment arm are seeking to recover title and possession of 24 land parcels along Jalan Semarak in Kuala Lumpur, as their civil suit over the Kuala Lumpur Vertical City (KLVC) development goes to trial.
According to The Edge Malaysia, the High Court began hearing the suit on Tuesday (Oct 6), nearly seven years after it was filed in 2019. The dispute centres on a 2014 master development agreement involving 20.066 acres of prime land.
Felda and Felda Investment Corp Sdn Bhd (FIC) allege that the defendants conspired to defraud them through dealings involving land the plaintiffs value at RM1.062 billion. They also allege that a separate office leasing agreement exposed FIC to an estimated RM1.7 billion in potential rental liabilities.
The suit names 21 individuals and entities, including former Felda chairmen Tan Sri Mohd Isa Samad and Tan Sri Shahrir Samad, former Felda directors general, master developer Synergy Promenade Sdn Bhd (SPSB), Synergy Promenade KLVC Sdn Bhd (SPKLVC) and lawyers.
The Edge Malaysia reported that SPSB has filed a counterclaim seeking, among other relief, to compel Felda and FIC to comply with the development agreement. Alternatively, it seeks damages exceeding RM1 billion against the plaintiffs and other defendants.
In his opening statement, counsel Kumar Kanagasingam, representing Felda and FIC, alleged that SPSB's appointment as master developer had been predetermined before the two boards deliberated on the matter. He said SPSB was the only party to submit a proposal for KLVC, although FIC's board was led to believe at a January 2014 meeting that several proposals were under consideration. Kumar alleged that the other proposals on record were sham submissions from companies owned by Abdul Rahman Soltan, a director and shareholder of SPSB and SPKLVC.
Besides recovery of title and possession, Felda and FIC are seeking damages for fraud, breach of fiduciary duty and dishonest assistance, as well as dismissal of SPSB's counterclaim. The first witness called was Mohamed Ghouse Shajahan, who served on Felda's board from July 26, 2018, to July 25, 2023.
