Land forfeited after illegal quarry operation

SHAH ALAM: Menteri Besar Tan Sri Abdul Khalid Ibrahim said yesterday that the state government had forfeited a 234ha plot of land in Gombak belonging to Kumpulan Hartanah Selangor Bhd (KHSB) because of the illegal quarry operations.

He said that the state government was merely enforcing its policy of reclaiming land from companies that did not abide by specific regulations. "The quarry was operating without a license," he said after the state executive council meeting, yesterday.

"The state took a decision against them and the land would be forfeited and used for the benefit of Selangor people."

According to a report in an English daily, yesterday, the leasehold land belonging SAP Holdings Bhd, a whollyowned subsidiary of KHSB, had been forfeited by the state government in August.

The land is reportedly worth RM250 million on a lease that expires only on June 25, 2090.

Several shareholders of KHSB have lodged complaints with Bursa Malaysia over the Selangor government's action.

KHSB, listed on Bursa Malaysia in 2003, is the property arm of Kumpulan Darul Ehsan Berhad, which in turn is the Selangor government's investment arm.

The Selangor government holds the majority of shares in KHSB, the chairman of which is Raja Idris Raja Kamaruddin, brother of blogger Raja Petra.

Raja Idris had reportedly said that the company had received the land more than 20 years ago and had minimal control over the land as it had entered into a joint venture with another company to develop the land.

The controversy erupted in September, last year, after SAP Holdings was embroiled in a legal tussle with Cergas Tegas Sdn Bhd (CTSB), with CTSB alleging unlawful termination of a joint venture with KHSB.

Asked about the state government's decision to forfeit a plot of land belonging to its own company, Abdul Khalid said that "the state had to enforce the law".

"I am sorry but the state government must not discriminate," he said, adding that favouring state government-linked companies would hurt investor perception of Selangor.