Universiti Utara Malaysia (UUM) has to pay the Kedah government RM1.7 million in quit rent as the state Land and Mines Office (PTG) has rejected the university's application for a rebate, Menteri Besar Azizan Abdul Razak said.

He said legal action would be taken against the university if it failed to make the payment within the stipulated period.

"The university has appealed, but PTG did not approve it. So the university has to pay soon or it can be charged a penalty of more than RM90,000 or the land will be seized," he told reporters after visiting the site for the construction of the Kolej Universiti Insaniah campus at Kuala Ketil yesterday.

He said the rate of RM0.20 per sq ft of the UUM land was far lower than the rate imposed on other universities, like Universiti Sains Malaysia in Penang, which was RM2.50 per sq ft, and Universiti Teknologi Mara, at RM0.50 per sq ft.

Last month, UUM through its treasurer had sent a letter to PTG seeking to be given a rebate on the quit rent for another five years after the expiry of the previous rebate in 2008.

During the rebate period, UUM only had to pay RM150,000 in quit rent.

On UUM's intention to turn its area into a duty free zone, Azizan said it would affect the quit rent rate.

"If it is a duty free area, we will consider a new rate because the rate for commercial land is different," he added.

- Bernama