The Selangor government will appeal a Shah Alam High Court decision granting the developer of an abandoned housing project in Kuala Selangor for higher compensation from the state government.

The court ruled that the state government, which had acquired the land for the abandoned Bandar Alam Perdana project, needed to provide compensation based on the land's mixed development status instead of agriculture status.

However, Selangor Menteri Besar Abdul Khalid Ibrahim in a statement today disagreed with the ruling, pointing out that the developer, LBCN, had failed to convert the land's agriculture status which has a lower value.

"LBCN had admitted that it failed to pay the land premium, failed to change the land's status from agriculture to development and proceeded with the project illegally without approval from the authorities," he said.

Therefore, Abdul Khalid said the company did not deserve to fet higher compensation than the amount that was initially agreed upon.

Company’s lawyer ticked off

The Selangor MB also criticised the company's lawyer who told the media after the court ruling on July 9 that the new valuation could cost the state government up to RM1 billion.

"The plaintiff's lawyer's statement is clearly prejudice to the court case which is ongoing with the intention to create negative perception against the state government, as well as the municipal authorities and the state and federal land valuation departments.

"The state legal chambers will sent an official protest letter to the plaintiff's lawyer," he said.

The state government had taken over the project to build low-cost and terrace houses on a 1,037 acres of land in Kuala Selangor from Syarikat Perumahan Negara Bhd (SPNB), which stepped in after the project was abandoned since 2002, leaving house buyers in a fix.

Abdul Khalid said the state government had spent RM200 million to revive and complete the project.