Flood retention pond near Old Klang Road leased for RM19.5 mil?
Water catchment pool capable of holding 15 million litres 80% earmarked for service apartments
(The Vibes) – A retention pond at Batu 4½ near Old Klang Road is among six water catchment areas in Kuala Lumpur that have been thrust into the spotlight over redevelopment plans, despite the Klang Valley seeing the worst flooding in over 30 years.
Although the site has the capacity to hold up to 15 million litres of rainfall, the 1.6ha site has been tipped for mixed commercial and residential development in recent years, documents sighted by The Vibes showed.
While the current status of the plans is unknown, the Kuala Lumpur Land Works Committee had apparently approved a 99-year lease to a new developer called Sri Adara Sdn Bhd for a premium of RM19.5 million, according to a letter by the Federal Territories Land and Mines Department dated September 17, 2020.
The letter notes that the company’s December 13, 2019 application to lease the government-owned site under Section 76(a) National Land Code (NLC) was successful.
It also allowed for 80% of the area to be turned into service apartments, while 20% was meant for affordable housing, apart from a recreational park and other amenities.
The department also required Sri Adara to relocate 52 lots of workshops, with all related costs to be borne by the private developer.
The developer was also asked to pay the premium within three months of approval, the letter undersigned by the Kuala Lumpur Land and Mines department administrator, Hafeez Abdul Aziz stated.
However, the company had failed to pay the premium and sought an extension on December 16, 2020, another letter signed by the then Federal Territories Land and Mines department director Madlinza Masdah showed.
Despite the failed payment, the department had granted a six-month extension on January 15, 2021, which allowed the company to pay the premium before June 21, the same year.
Lembah Pantai MP seeking answers in Parliament
With the current status of the land unknown to the public, Lembah Pantai MP Fahmi Fadzil – whose constituency covers the site – said he is seeking answers from Parliament when it convenes for a special sitting on the recent flood disaster on January 20.
“The question is, how was this land transfer approved when it involved a company that was formed not more than a year from the application?” Fahmi told The Vibes when met recently.
“The company also saw a change of directors and shareholders mid-way through the dealings, which is very concerning and raises even more questions.”