Semantan Estate Loses Bid for Duta Enclave Land as Federal Court Rejects Leave to Appeal

Semantan Estate (1952) Sdn Bhd has exhausted its latest legal avenue in a long-running battle over the ownership of Kuala Lumpur’s prime Duta Enclave land, after the Federal Court dismissed the company’s application for leave to appeal. The decision means the land remains under the federal government’s ownership, and the dispute will now shift to determining compensation.

A three-judge bench — Chief Judge of Malaya Tan Sri Hasnah Mohammed Hashim, Federal Court judge Datuk Hanipah Farikullah and Court of Appeal judge Datuk Che Mohd Ruzima Ghazali — unanimously found that the 26 questions of law submitted by Semantan Estate did not meet the legal threshold required for the apex court to hear a full appeal.

The ruling marks one of the final decisions for both Hasnah and Hanipah, who retire this month.

Apex Court: No Basis for Transfer of Land Back to Semantan Estate

Delivering the broad grounds of judgment, Hasnah said the High Court’s 2009 ruling — which found that the government had trespassed and illegally acquired the 263-acre site — did not order the physical return of the land nor contain any enforceable direction to transfer the title.

As a result, she said, there is no legal basis for Semantan Estate to seek registration of the land title under its name almost seven decades after the original acquisition.

Because of this, compensation will be assessed based on 1956 land values, when the government first took possession of the land for RM1.325 million—a point reaffirmed by the Court of Appeal in June.

Hasnah added that the company only sought title transfer in 2017, eight years after the 2009 judgment—making the matter highly “fact-centric” rather than a constitutional or novel legal issue.

“For these reasons, both appeals are dismissed,” she said.

Supporting Grounds Confirm No Registrable Ownership

Datuk Hanipah Farikullah, who authored the supporting judgment, agreed that the 2009 ruling granted Semantan Estate only “beneficial interests”—not registrable ownership under the National Land Code.

Since the title remains legally under the federal government, she said, the appeal essentially contradicts the High Court’s original findings.

With no registrable interest, the case did not raise new questions of law that would justify intervention by the apex court, Hanipah added.

Background: A 70-Year Dispute Over KL’s Most Valuable Government Precinct

The dispute dates back to 1956 when the colonial-era government acquired the Bukit Semantan land. Over the decades, the site transformed into one of Kuala Lumpur’s most significant government zones—now known as Duta Enclave—housing the National Archives, Inland Revenue Board headquarters, KL Syariah Court, the Malaysian Anti-Corruption Academy, and major federal infrastructure.

Semantan Estate argued in its 2003 lawsuit that the compulsory acquisition was unlawful and amounted to trespass. It secured a major win in 2009, with findings later upheld by the Court of Appeal and Federal Court in 2012. However, while the courts agreed the acquisition breached procedure, they did not order the return of the land.

Subsequent attempts by Semantan Estate to secure the land title, compel a physical handover, or enforce its beneficial interest have been dismissed across multiple court levels.

Compensation Hearing and Mesne Profits Still Ongoing

With leave denied, the case now moves to compensation assessment. The High Court will determine compensation based on 1956 values on Nov 17, before Judge Roslan Mat Nor.

Apart from compensation, Semantan Estate is also pursuing mesne profits—damages for the government’s wrongful use of the property.

• Semantan Estate’s estimated losses: RM5 billion – RM12 billion

• Government valuer’s estimate: Approximately RM290 million

A separate High Court is scheduled to hear submissions on mesne profits on Dec 11.

Court of Appeal: Returning Land After 70 Years Is Impossible

In its earlier June ruling, the Court of Appeal held that two pre-Merdeka laws — the Specific Relief Act 1950 and Government Proceedings Act 1956 — expressly bar courts from ordering the return of land from the government.

Justice Datuk Lee Swee Seng noted that returning the land would have “horrendous” consequences, given that the site is now a fully developed government district with public facilities, road networks, and high-value infrastructure.

Chief Justice Datuk Seri Wan Ahmad Farid Wan Salleh also delivered supporting reasons in the appellate court’s unanimous ruling.

Legal Teams

Semantan Estate was represented by

• Datuk Dr Cyrus Das

• Ira Biswas

• Alexie Ng Ying Ching

The federal government was represented by

• Senior Federal Counsel Shamsul Bolhassan

• Nurhafizza Azizan

SEO Integration (Natural Placement)

While the Duta Enclave case is tied to Kuala Lumpur’s public-sector land, the wider context of land rights, valuation, and development continues to influence Malaysia’s property market—from high-demand commercial property in KL to growth areas around industrial land in Selangor, factory in Puchong, and logistics-driven corridors linked to industrial property in the Subang area. The evolving legal landscape underscores the importance of secure title, transparency, and due process for developers, investors, and landowners alike.