Berjaya Hills loses legal battle over retroactive quit rent charges in Pahang
The Malaysian Court of Appeal ruled in favor of the Pahang state government, confirming its authority to revise quit rent rates without needing specific National Land Council approval for the quantum. The court dismissed a legal challenge from Berjaya Hills Resort Bhd, which argued that the retroactive rate hikes were unlawful.
Why it matters
This ruling clarifies the administrative powers of Malaysian state governments regarding land governance and taxation under the National Land Code.
KUALA LUMPUR, July 29 — The Court of Appeal has rejected five appeals by Berjaya Hills Resort Bhd and several landowners, upholding the Pahang state government’s right to revise quit rent rates without needing the National Land Council to approve the specific amounts.
In a unanimous judgment delivered by a three-member bench, Justice Datuk Choo Kah Sing clarified a key distinction in land governance: while the National Land Council must approve the timing of a state’s revision exercise, the actual rates imposed are determined solely by the state authority under the National Land Code (NLC), FMT reported.
The legal battle began when Berjaya Hills and other proprietors challenged a substantial increase in quit rent across 330 parcels of land in Bentong. The revised rates took effect in January 2020, but were applied retroactively for 2020, 2021, and 2022 through bills issued in 2023.
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