The Malaysian Government offered Semantan Estate a settlement on August 14, 2026, to resolve compensation claims related to a disputed 263.272-acre land area known as the Duta Enclave in Mukim Batu, Kuala Lumpur [1, 2, 3]. The land was originally acquired by the Government in December 1956 when it was a rubber estate located outside Kuala Lumpur's municipal boundaries, then part of Selangor [1, 3].
Semantan Estate (1952) Sdn Bhd has been engaged in a legal battle with the Government since at least 2003 over compensation for the acquisition [2, 3]. The dispute intensified after the Federal Court in November 2025 dismissed Semantan's leave to appeal, confirming a Court of Appeal ruling that Semantan is entitled to compensation based on the 1956 land value [2].
The disputed land now hosts several federal institutions, including the Inland Revenue Board headquarters, National Hockey Stadium, National Archives, Kuala Lumpur Syariah Court, and the Malaysian Anti-Corruption Commission Academy [2].
At the ongoing High Court trial on August 14, 2026, licensed surveyor Foo Gee Jen testified that the Government’s historical land valuation was flawed and inconsistent [1, 3]. Foo argued the Government ignored the development potential of the Semantan land by excluding nearby developed areas such as Kenny Hills (now Bukit Tunku) at the time of acquisition [1]. Foo also rejected the Government’s claim that no compensation for severance or injurious affection was due because Kuala Lumpur’s municipal boundaries had not changed, calling it "an incorrect interpretation" [1].
Senior Federal Counsel Nurhafizza Azizan said, "Under the circumstances, we would like to settle the case as soon as possible. But to be fair to (Semantan), I’m sure they will need some time to confer with their client before they can decide as to whether the matter can be settled amicably" [2]. She also noted the settlement proposal "must first obtain approval from the Ministry of Finance," adding, "We only received this proposal yesterday from MOF" [3].
The settlement offer emerged while the High Court trial continues to assess appropriate compensation for the land. The court rejected a request to delay proceedings so the settlement can be finalized [2, 3]. The next scheduled hearing will address further evidence and legal arguments regarding valuation and compensation.
