Synergy Promenade files suit against Felda, FIC

By ALIFAH ZAINUDDIN / Pic By TMR

SYNERGY Promenade Sdn Bhd, the master developer of the Kuala Lumpur Vertical City (KLVC), has filed a legal suit against the Federal Land Development Authority (Felda) and Felda Investment Corp Sdn Bhd (FIC) with the Kuala Lumpur (KL) High Court.

The lawsuit, made on July 9, is the latest salvo in an ongoing battle between Synergy Promenade and the federal land agency following the transfer of ownership titles of 20 acres (8ha) of Felda land along Jalan Semarak in KL to the private company two years ago.

In a statement sighted by The Malaysian Reserve, Synergy Promenade is seeking a decree of specific performance against Felda and FIC requiring them to comply with an agreement signed on June 2, 2014, where Synergy Promenade was appointed as the sole developer for a mixed development on 24 parcels of land, measuring 20.66 acres in total.

Under the deal, FIC was required to deliver vacant possession of the land within 30 days of signing the agreement, and also ensure the vacant possession would not be revoked by Felda prior to the completion of the project, said Synergy Promenade.

However, the company claimed that in January 2016, Felda and FIC merely delivered vacant possession of one parcel of the land to the company.

Synergy Promenade is also seeking a consequential order directing the defendants to forthwith deliver vacant possession of the aforesaid lands to the company.

The case came up before High Court deputy registrar Farah Shuhada Ramli yesterday, and she ordered Felda and FIC to file their statement of defence or counterclaim by Aug 12.

Further case management will take place on Sept 23.

In December 2017, a local daily reported that Felda was at risk of losing the ownership of a strategic parcel of land worth an estimated RM200 million on Jalan Semarak, following a contentious transfer made three years prior.

The transfer of ownership was believed to have taken place when FIC appointed a local company as its main developer in June 2014.

The land was intended for the KLVC development project, which involved the construction of seven towers — including KLVC Tower1A, a 70-storey skyscraper and a 75-storey tower housing a four-star hotel, which is part of FIC’s hospitality business plan.

A month after the news, Felda announced that it had regained ownership of the land involved in the KLVC project.

Former Felda chairman Tan Sri Shahrir Samad said the developer had returned the land to Felda without cost, as Felda did not receive any payment for the RM270 million transfer to Synergy Promenade.

However, in June last year, Synergy Promenade pursued legal action against Shahrir and Muar MP Datuk Razali Ismail seeking damages of RM100 million for defamation, benefits, costs and other suitable relief.

It has also sought RM250 million in a defamation suit against The New Straits Times Press (M) Bhd over articles on the issue.