KUALA LUMPUR (July 21): The Shah Alam High Court has ordered Sime Darby Property Bhd (KL:SIMEPROP) to repay RM36.23 million, plus 5% annual interest, to the Malaysian Highway Authority (LLM). 

In a filing with Bursa Malaysia Tuesday, Sime Darby Property said the court found that the company had received more compensation than it was entitled to for land acquired for the West Coast Expressway.

The dispute involves seven plots of land that were compulsorily acquired in 2015. 

At that time, the company was awarded RM169.3 million in total compensation; RM90.7 million for the value of the land and RM78.6 million for severance and injurious affection, which compensates a landowner when taking part of a property reduces the value or usefulness of the remaining land.

LLM challenged the additional RM78.6 million compensation in court. After years of legal proceedings and a rehearing earlier this year, the High Court ruled in LLM's favour on July 13. On July 20, the court determined consequential matters, including costs to be paid and ruled that Sime Darby Property must refund RM36.23 million plus interest.

Sime Darby Property said the ruling will have a financial impact because of the repayment and interest, but it will not materially affect its business operations. The company is reviewing the judgement and considering whether to appeal.

Sime Darby Property’s share price was almost flat at RM1.35 at noon break on Tuesday, valuing the company at RM9.18 billion.

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Sime Darby Property’s RM78.6 mil compensation overturned by court