Kg Buah Pala land title prohibits development: Lawyer


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.

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Dr Halkum Bonggol LAD

I think our Lawyer Derek Fernandez is confused with the term “sekatan kepentingan”
I totally agree with Voter July 30th, 2009 that 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 others. Of course the Koperasi can develop the land but it must be totally fincanced by them”. The koperasi can however apply to the state goverment for cancellation of this so-called “sekatan kepentingan”. So, it works accordingly…..


State money is belonged to the people of Penang. LGE and his staff are elected by Penang people. He cannot go against the majority of the penang people. Squatters are not just 23 families in Malaysia, there might be many thousands. Every sen that is spent has to be accountable to all the citizen of Malaysia.

When LGE washed his hands, he knew he has done his best.

anna brella

Han2: Could I be right in saying that you are perhaps being a tad bit too hasty in, allegedly, casting an aspersion on our charitable, political MIC-chappie, Vell Paari? Ever since that revealing revelation was made in Malaysiakini some time ago about how he was supposed to have been, incredulously, so charitable in financing the residential plus the expensive overseas higher education study costs of a brother of one of his ex-employees (the actress Sujatha who is now sadly, deceased from an apparent alleged paraquat-drinking induced suicide) the general impression that most reasonable folk get of this chap, from this… Read more »


‘nil The way LGE and the synchopathic DAP supporters have behaved thru this whole sorry episode has turned me off DAP for good. And I’m not the only one. LGE has dragged the good name of his father down. Maybe he’s just not qualified or good enough. A jail term doesn’t make one a good leader. PR best find an alternative MB. Let’s see how these racist hypocritical DAP supporters like that one. DAP was given the golden chance to rule and failed the multiracial test. Compared to DS Nizar in Perak, LGE belongs in MCA hanging out with …… Read more »


It has been reported that the state govt never issued “Stop Work” order to the developer and this was revealed by their counsel.

So has all LGE’s tough talk to developer just a show to deceive the villagers and the public ?

Time is running out and LGE is running away….Monday will be a Black Monday for the residents of KBP and to all right-thinking the Penangites.

Whatever the case, the poor and highly opaque manner LGE handles this matter shows that at the core LGE just not cut out to be a Chief Minister.


Has anyone really consider to whom haa the land been sold? has anyone pause to think if the officer who approves/rejects land related application is indirectly part-owner of the land? so what will he do? i said “what will” not “what should” he do. whatwill you do? b4 some1 says sack him, think about the whole public sectors – can we replace all?


If you blindly believe lawyers, you will be sucked in by them.
They read only 1 line and issue judgmental opinions as if they were the judges.

Whatever happens, if litigation and not negotiation is adopted, be prepared for a long long fight in the courts assuming there in no manipulation of the judicial process.


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.

K W Mark

We support u,LGE!!!


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


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


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.


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.


“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… Read more »

Jebat musibat

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

And the ball keep bounching!


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.


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

Play hardball.


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… Read more »

I don't know???

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


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

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



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.


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….


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.

Ong Eu Soon

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.

Leong Yook Kong

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.