Jul 302009
 

Bingo! Could this be it?

Lawyer Derek Fernandez has come up with a surprising finding that should strengthen the Penang state government and the residents’ hand in negotiations with the developer.

The temporary title document (Borang 11AK), registered with the registrar of land titles and issued on 27 March 2008, contains a clause “Sekatan-sekatan kepentingan“, which states:

Tanah yang diberi milik tidak boleh dipindah milik, cagar, pajak, pajakan kecil atau sebarang bentuk urusniaga.

Fernandez therefore argues that any form of business transaction is prohibited. So, the state government could just buy back the land by paying the original premium plus interest, he says. It could also issue a notice to the developer to stop any demolition work.

This report from the NST:

Law prohibits land from being developed

KUALA LUMPUR: Land law in Penang categorically prohibits the re-development of Kampung Lorong Buah Pala, a lawyer here specialising in issues involving local authorities said yesterday.

Derek Fernandez said the temporary land ownership (Borang 11AK) document for the village issued by the Timor Laut Land Office stated that the 26,683.96 sq metre plot could not be transferred or mortgaged.

Neither could the land be leased or entered into any form of business transaction, he added.

Fernandez said the state government should issue a notice to the developer, Nusmetro Ventures (P) Sdn Bhd, to stop the demolition of structures on Penang’s High Chaparral.

“The land title actually prohibits any development unless expressly approved by the state government. The developer also cannot enter into any agreement with the Koperasi Pegawai Kerajaan Pulau Pinang,” he told a press conference held jointly with former Petaling Jaya councillor A.Thiruvenggadam.

Fernandez said the state government could buy the land on which the century-old settlement was located by just paying the original premium with interest.

“They do not have to pay the RM150 million cost of the housing project promoted by the developer.”

He was commenting on Chief Minister Lim Guan Eng’s statement that the state could not acquire the land as it would need to pay RM150 million in compensation.

  32 Responses to “Kg Buah Pala land title prohibits development: Lawyer”

  1. “The land title actually prohibits any development unless expressly approved by the state government.”

    Now, didn’t the previous state govt. approved the land for development?

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  2. Hi everyone,

    “The temporary title document (Borang 11AK), registered on 27 March 2008, contains a clause “Sekatan-sekatan kepentingan” which states:

    Tanah yang diberi milik tidak boleh dipindah milik, cagar, pajak, pajakan kecil atau sebarang bentuk urusniaga.

    Fernandez there argues that the state government could just buy back the land by paying the original premium plus interest.”

    If what is claimed by lawyer Derek Fernandez is valid and enforceable, then the Pg State Govt. should pursue along these lines. Would other legal authorities, like Bar Council, NGOs, care to comment! As time is of essence, would the Pg State legal team look into this with the greatest urgency, and if what this lawyer claim is enforceable, then buy back the land at the original RM3.2 millions.

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  3. By Jove, I think Derek Fernandez may be on to something.But I would not bring out the champagne just yet, as Under Section 76 of the National Land Code Parliament has expressly given the powers to the State Authority whether to alienate State land for a term not exceeding 99 years or in perpetuity “where the State Authority is satisfied that there are special circumstances which render it appropriate to do so”.
    As we all know s”pecial circumstances “is very subjective and open to abuse.
    For the sake of the villagers however, I do hope that I am wrong.

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  4. I guess Darshan is clueless of this. Hence, it is critical at this juncture to look into this to prohibit demolition.

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  5. This Kampong Buah Pala issue has become so interesting! We need to solve the mystery who chaired the Land Committee that gave recommendation to the Director of Lands and Mines for the approval of the land transfer. How come the Land Committee overlook this clause :

    Tanah yang diberi milik tidak boleh dipindah milik, cagar, pajak, pajakan kecil atau sebarang bentuk urusniaga.

    We need an answer about the identity of the chairperson and the committeee members of the Land Committee. Based on what the Land Committee gave the recommendation for land transfer? Declassify the report and make it public is what LGE should do to clear any suspicion about his involvement in the land transfer.

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  6. A lousy argument by a lawyer whose eyes are clouded by the dust of the battle. This is the most stupid proposition ever. The dealings are meant to be dealings under the NLC. Its a leasehold that will not allow a 3rd party to have interest.

    The as far as permission is concerned they say the DO was issued, the building plans approved, what was that for? For fun?

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  7. Wow! This is good news (unless you’re the developer; or MIC/Gerakan who would love to see this mess get worse).

    Hopefully this will solve the problem for the state govt and the villagers and we can all move forward.

    MIC & Gerakan will have to try and find some other s*** to stir.

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  8. Aiyo yo Samy, where is your RM3.2 million to buy back the land? Samy, do not back down at the last minute, if what the lawyer quoted was right and legal. Be a gentleman for once.

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  9. If the Director of Lands and Mines gave approval for the land transfer without the recommendation of Land Committee. LGE can just declare that the land transfer is null and void. As it is the requirement of the state law that the Director of Lands and Mines must make a decision under the recommendation of the Land Committee.

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  10. This is a great news indeed !!

    LGE should act NOW and take the money from MIC and give the land back to the residents !!!

    In this way, the state govt do not lose anything while the residents get to keep their village while it is the MIC who pays to the developer.

    Now LGE has no excuse to solve the problem.

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  11. Well done Derek. In essence, anything Nusmetro wants to do, consent or endorsement from state govt is required.

    From the off, anyone would have realise – bar Hindraf – that the problem that plagues Kg.Buah Pala residents was made an issue to disrupt the functions of a newly appointed state assembly. Also, the land office should be hauled up to answer allegations that this was all along a land scam legitimise with dubious transfer of title.

    Clearly, this in another instance of an UMNO… govt riding roughshod over the rest of the nation….

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  12. Fernandez has highlighted the truth (allegedly) hijacked by the Penang DAP state government. If the PR government really care for the Indians, get the RM3.2 million promised by the MIC Presiden and pay to the Cooperative to release the land to the Kg.Buah Pala residents.

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  13. agree with
    tan, tanjong bungah
    July 30th, 2009 at 1.05pm

    legal eagles, please look into this urgently. bless u all.

    4RAKYAT

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  14. If the land has such restrictions and is taken bought
    back by the P Gov, does this mean that occupants
    of the land will have to return the compensation.
    I just hope that the money is still available to be
    returned.

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  15. Legaly the piece of land is now own by Koperasi Pegawai Kerajaan Pulau Pinang.The state govermant could not buy back if the owner does not agree with the amount offered.The condition is only temperorry.It can be change in future together with the development plan and pay higher premium.That is why the initial price is only RM3.2mil because of the condition.Smart move by Koperasi.Buy cheap, change condition later and sale at present market value.Now the state gov should negotiate with the owner/developer on win win situation.If the owner/developer hard headed than state gov will should remind them that the “sekatan kepentingan”on the title will remain there forever.

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  16. The State Govt should also shutdown Koperasi Pegawai Kerajaan Pulau Pinang. Sack all officials of the Koperasi…

    Play hardball.

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  17. I can follow the logic of restriction on development from the published borang 11AK. But how that leads to the “Pg state can then buy back land at originak cost plus interest” – what leads to such conclusion? i buy sweet from youl you say i cannot eat. ok. i wont eat but i need not sell u back my sweet. n if i do i need not sell u at the price i bought.

    does our malaysian legal fraternity lacks some reasoning skill? or i m really stupid. i hope it’s the latter, for the country”s sake.

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  18. No point lah!..
    Then the Numestro brought this case to Mahkamah Persekutuan, … they (might) win again and again too!.

    And the ball keep bounching!

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  19. “Tanah yang diberi milik tidak boleh dipindah milik, cagar, pajak, pajakan kecil atau sebarang bentuk urusniaga”.

    Hold yr horses. I think Fernandez is wronglah. The ‘urusniaga’ or transactions that is prohibited are 1. transfer 2. charge 3. lease 4. sub-lease and any transaction connected with it like sub-divisions and othrs. Of course the Koperasi can develop the land but it must be totally fincanced by them. They can’t raise funds by charging the land to a Bank without state approval and neither could they apply for sub-divisions and have the lands transferred to would-be purchasers.

    In short the Koperasi can develop the land but without the State Gov’t permission to charge, sub-divide and to transfer the sub-divided lands to purchasers, development of the land is next to impossible.

    Koperasi can only surmount all these when BN gomen took over. So Penangites know how to stop them.

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  20. Agree with Flombut and PhilipLIM, you cant buy back unless the legal owner wants to sell it and it has to be an arms length transaction. The only way to take back the land at minimal cost is for the state govt to acquire it.

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  21. Tough luck. Please check amendments to the National Land Code. There is no such thing as what the NST is selling for Samy Vellu and MIC.

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  22. Let us hope LGE can geet things right this time!
    Yes, LIM if you fail this time, it is UNFORGIVEABLE!

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  23. Now, lets see if Vel Paari will still put up the MYR3.2 million or he is just trying to gain some Indian votes?

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  24. We support u,LGE!!!

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  25. Folks, don’t believe in this nonsense. Since the fiasco, how many heros have came out to raise new findings and new hope for the case.

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