Chief Minister Lim Guan Eng has welcomed Penang Appeals Board chairman Yeo Yang Poh’s assurance that billions of ringgit in compensation to developers need not be paid by the state government if it revokes planning permissions.

This concerns disputed land development where planning permissions by the Penang Island City Council (MBPP) are set aside by the Appeals Board.

But Lim cautioned that Yeo had admitted that the Appeals Board decision is still subject to judicial review.

He reminded that University Malaya Professor Gurdial Singh Nijar and Human Rights Society president Ambiga Sreenevasan have been appointed to assist the Penang government and MBPP to uphold the Appeals Board's decisions.

“This is to avoid paying huge compensation for MBPP’s decisions that reject development for land above 76 metres (250 feet) or throwing out special projects that were approved by the previous government,” Lim said in a statement.

Lim’s remarks come after the latest decision made by Yeo, which he said was based on the Town and Country Planning Act in the Sunway Bhd case.

Yesterday, Yeo said the Penang government was not liable for compensation in the event the State Appeals Board (SAB) revokes the planning permission for developers.

The Appeals Board’s decision indicated that MBPP did not need to approve the development order sought by Sunway Bhd for their land above 76 metres.

The project allowed development of either six units per acre or 15 units per acre by the previous government, Lim noted.

“The Appeals Board also decided that compensation need not be paid by MBPP for rejecting such special projects’ application from landowners.

“However this decision by Appeals Board can be subjected to judicial review by the High Court. Sunway Bhd and other landowners affected by this decision have 90 days to do so.

“Sunway Bhd has communicated to me of its intention to do this. Sunway may also seek compensation, should the Appeals Board decision be affirmed by the High Court,” he stressed.

Lim said this gives MBPP an opportunity to overturn the special projects approved given by the previous state government without paying financial compensation.

He added that the formidable legal expertise of Gurdial and Ambiga will assist the state government when the judicial review is argued in the High Court, in what is expected to be the “case of the century for planning law” in Malaysia.

Lim had been strongly criticised for acceding to previous BN rulings, especially on land reclamation projects and high-rise developments.

He had cited two major cases, one involving Majlis Perbandaran Seberang Perai (MPSP) in 1994 where the council was subsequently sued by NEG Engineering Sdn Bhd for RM243 million.