Penang Chief Minister Lim Guan Eng has warned that the state would defend the rights of 3,000 residents who would face eviction if the land in Air Itam purchased by 1MDB were developed.

He said any proposal to develop the land must obtain the approval of the Penang government.

"When the land was purchased prior to the 13th general elections, those involved had an agenda to make me lose my seat which was in Air Putih, where the plot of land is located?" Lim ( photo ) said at a press conference today.

"Several projects were also announced and although promises must be fulfilled, remember there are currently 3,000 residents on the said land (who might be displaced).

"The Penang government will not hesitate to defend the rights of the residents as any interest in the land is to fulfill certain objectives, as the land sits on the chief minister's constituency," he said.

Lim was responding to a question on news report stating that 1MDB monetisation of the company's land parcels in Selangor and Penang has received significant proposals .

Fate of the residents must be settled

Its president and group executive director Arul Kanda ( photo ) said it is part of the company's plan to monetise the land parcels in Air Itam and Pulau Indah through joint ventures or outright sales.

1MDB had acquired the land in Air Itam for RM1.1 billion but the federal investment fund has been criticised for overpaying when making the purchase.

The finance ministry-owned company headed by Prime Minister Najib Razak have been heavily slammed for incurring a RM42 billion debt.

Lim said the state has yet to hear of any developments in the Air Itam land.

"Any interested parties, please take note that the state government never promised to approve any plans on the land as the fate of the residents living there must be settled.

"If this is seen as a warning, so be it," said the DAP secretary-general.