PUTRAJAYA — The Court of Appeal has ruled that the government must compensate Semantan Estate Sdn Bhd for using 106 hectares of land in Duta Enclave, Kuala Lumpur, for nearly 50 years.

A three-judge panel led by Justice Lee Swee Seng said monetary compensation was more appropriate than transferring the land title, as the area houses major government buildings. The case now returns to the High Court for a compensation assessment within 90 days.

Semantan Estate’s cross-appeal to gain ownership of the land was dismissed. Both parties will bear their own legal costs. The ruling reinforces the government’s duty to compensate fairly while retaining land for public use.