Land Acquisition

SOP Guidelines: Land Acquisition

Procedure of Land Acquisition

In the case of acquisition of any land for the use by ministries / departments of federation (not including federal statutory bodies which may have land in their own name), the following procedures shall be fully complied.

1. Land Selection

Two years before the date of a required land, ministries / departments requiring the land shall first determine the site needs. This shall be made by means of negotiations between the ministries / departments in need of land with relevant district officials / administrators of land (PT). These negotiations must be made through the committee of site selection and the shall take into account the suitability of land / site in terms of location, usage, price and provision of sufficient funds for projects to be implemented.

At this stage, social and economic problems that may arise following the acquisition should be in consideration. Existing land squatters, for example, should be avoided. To acquire land to implement new projects, the ministry / department shall obtain opinion of local authorities and other technical departments. However, the view from the technical department is not required if the acquisition involves the expansion of existing projects such as widening roads and so on. The ministry / department should determine whether the notification under section 4, the land acquisition act (APT) 1960 is required or not.

The final decision in relation to site selection must be made at least six months from the date the land is to be acquired. However, if the notification under Section 4, APT 1960  is required, the Federal Lands Commissioner (PTP) shall be notified six months in advance of the date of the land is required.

2. Official Application

Once the final decision on site selection is made, the ministry / department concerned should write to the PTP to formal the application on his behalf be submitted to the PBN. Type of letter to be delivered to the PTP is as on page A.

Application Letter to the PTP shall be submitted together with the plans and related documents as follows:

• 25 pieces of acquisition plan that use the same scale as found in the relavant land office.
• The boundary of lots applied for shall be colored red.
• PTP upon receipt the application of the ministries / departments, will submit a formal application to the PBN through the Director of Lands and Mines (PTG) using a special application form by sending copies to the related parties.

3. Application Process

When the PT received a copy a formal application from PTP he must take action to process the application, including by providing a summary paper for consideration by the PBN. The summary paper, among others shall contain the following information:

• Gazette under section 4, if a study on the suitability of the site must be made;
• Gazette under section 8;
• Acquisition through immediate testify under section 19, if requested so, and
• Temporary Occupation under Part vii APT 1960 if needed.

When the PBN approval is obtained, the PTG asked to give priority to the declaration made in the Government Gazette as soon as possible. This is necessary because the gazetting action usually takes a relatively long time and further action cannot be progressed.

4. Land Valuation

During the gazette declaration made under Section 8, PT is asked to contact the Director of State Valuation and Property Services for land valuation without waiting for news to be published. This is to avoid delays.

For the purpose of obtaining a valuation from the department of land valuation and property services, the form such as on page B should be used.

5. Investigation and Payment of Compensation

PT should take note that copies of Form E and wherever necessary, form F, will be submitted also to the ministry / department concerned. Under section 55 (2), representative of the ministry / department may be present to testify on the investigation day by submitting a confirmation letter signed by the state secretary. A copy of the E form must also be sent to PTP for information.

Interested parties or their representatives, may attend the on the investigation day. When the investigation is finished PT shall provide written orders issued in the form G and issue the form H to the interested parties. A copy of Form G and H must also be delivered on the ministry / department concerned. In any case, even PT shall provide its written order within 2 years from the date of form D gazette. Failure to do so will result in the form D expired and its acquisition proceedings void.

After receiving copy of the form H, the ministry / department concerned shall make an immediate payment of compensation within the period of 3 months. If in accordance with section 29a APT award exceeding RM 15,000 for any scheduled land, then 25% of the compensation  is the hold for a period of 6 weeks for ministries / departments to make an appeal under section 37 (3) 1960 Apt. If no appeal is made, the remaining 25% of compensation to be paid along with interest of 8% from the first payment date. It is proposed that ministries / departments pay the full compensation if it does not intend to appeal / protest against the award of PT.

In the circumstances specified in section 29 (1), Apt 1960, the money must be deposited in court or in the event that the interested person died intestate, kept in the office of the Malaysia estate administrator officers with immediately to avoid interest payment 8% per annum. (See circular of the Director General of Lands and Mines 1 / 1992). Ministry / Department shall notify the PTP date of payment of compensation to be made.

6. Reference to Court

As mentioned reasons under section 37 of Land Acquisition Act 1960, any interested person or party on whose behalf the land is taken may by PT to make reference to the court. Attention of the parties is drawn to section 38 of the method and duration of a reference may be made. Among the terms of reference that must be followed is payment of the requested deposit within 30 days of receiving the letters of PT.