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. FIC was consequently induced to appoint SPSB on Jan 24, 2014, he said.
The plaintiffs contend that the development agreement capped returns at RM500 million despite the land’s asserted commercial value of RM1.062 billion.
SPSB gave a different account in a 2018 email interview with The Edge Malaysia, saying Felda was entitled to a minimum of RM500 million or 10% of the project’s gross development value, whichever was higher. The company then estimated the land’s value at RM150 million to RM200 million.
Felda and FIC also allege that SPSB directors transferred land titles to themselves and related entities without payment to Felda.
In the 2018 interview, SPSB maintained that it had transferred part of the land into its name within the terms of its agreements with Felda and FIC to obtain development financing. It said lenders required first-party charges over the land and that Felda had been notified of the transfers.
SPSB separately said it had paid RM10 million to Felda as part of the consideration. That account did not specify whether the payment related to the disputed land transfers.
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.
Separately, the High Court recorded a consent judgment on March 25, 2025, in a defamation suit brought by Synergy Promenade against Shahrir and Felda.
As part of that settlement, Shahrir read a joint statement signed with Abdul Rahman affirming that the land transactions and subsequent re-transfer to Felda were legitimate and free from vitiating factors.
The statement formed part of the settlement of the separate defamation suit, rather than a determination of Felda and FIC’s allegations in the present civil proceedings.
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Source: EdgeProp.my
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