ALOR STAR: A local company has filed a lawsuit worth RM310 million against the Kedah State Secretary Incorporated (SSI), alleging breach of a land lease agreement signed in 2020.
Aras Niaga Group Bhd legal representative Firhat Muhammad Fikri said they named three parties as defendants in the writ of claim, namely SSI Kedah, SSI general manager, and the Kedah state secretary.
He said their claim against all defendants was filed on March 25, after SSI directed Aras Niaga to return the 255ha land in Mukim Semeling, Kuala Muda, which had been legitimately leased, back to SSI.
"As a result, the plaintiff demands compensation for breach of promise regarding the additional agreement in the amount of RM300 million and damages for work done by the plaintiff in implementing the project at the site in the amount of RM10 million.
"We also request a specific order to enforce the additional agreement by the parties and validate the intention and purpose of the agreement.
"Additionally, we ask the court to affirm that the project falls under the purview and protection of the term 'Agricultural' in the National Land Code," he said at a press conference here today.
Aras Niaga chief executive officer Datuk Muhamad Annas Mohamad Anuar said they had plans for collaboration with Permodahan Kedah Bhd to develop an iron ore mine at the site.
He said that the company had invested a significant amount to control the site, including conducting studies in the area before presenting the potential for iron ore mining activities capable of generating revenue for the state.
"What is regrettable is that after the presentation in March 2021, SSI no longer entertained our requests to obtain mining licenses and left the status of this project hanging. In fact, during a meeting with SSI general manager, we were asked to return the land.
"According to the agreement, we have a 45-year leasehold right on the site and have fulfilled all the conditions set to start developing the iron ore mine up to the additional agreement stage, but we were ultimately not granted a mining license."
Kedah State Secretary Datuk Seri Norizan Khazali said his office had received a notice regarding the lawsuit.
He said he would seek legal advice from the state's legal advisors for further actions.
"This is an old case, not a recent development, predating my tenure as state secretary. I will refrain from elaborating further," he said during a press conference earlier today.