Berjaya Hills Secures Stay on Pahang Land Forfeiture
Berjaya Hills Resorts Bhd has obtained a temporary stay against the Pahang government’s land forfeiture, according to court documents. The company had filed leave to appeal to the Federal Court over the Court of Appeal’s decision on July 16, which ruled that state governments have the authority to determine quit rent rates without obtaining approval from the National Land Council (NLC).
The leave hearing is scheduled to be heard on December 8. Berjaya Hills is posing 12 questions of law before the apex court, which will decide whether to grant leave or otherwise. The matter arose as the Pahang government reportedly forfeited 122 parcels of land owned by Berjaya Hills in Bukit Tinggi on September 28, following the purported failure of the company to settle RM70 million in quit rent rates.
Background to the Dispute
The original dispute arose after the Pahang government introduced revised quit rent rates under the Pahang Land (Amendment) (No 3) Rules 2019, which came into force on January 1, 2020. In 2023, the Pahang Land and Mines Department imposed the higher rates for 330 parcels of land and applied them retrospectively to 2020, 2021, and 2022. Prior to September 2025, the company had paid approximately RM42 million in quit rent charges in respect of 208 parcels of land.
Between September 2025 and November 2025, Berjaya Hills filed three suits at the Temerloh High Court, challenging the validity of the forfeiture proceedings in respect of 122 parcels of land where RM70 million of quit rent had been imposed. Chuar Kia Lin, the company’s lawyer, said the three suits remain pending before the Temerloh High Court and that the forfeiture proceedings have yet to be conclusively and finally determined.
On September 28, the Pahang government proceeded with enforcement action against the company’s premises, including the sealing of buildings comprising staff quarters, central laundry, rabbit park, and Japanese garden.
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Court of Appeal’s Decision
The Court of Appeal’s decision on July 16 upheld the High Court’s earlier decision, ruling that the NLC’s role is to formulate national land policy and advise the federal and state governments, rather than approve or scrutinize individual states’ quit rent rates. The bench further ruled that Section 14(1)(e) of the National Land Code grants state authorities the power to determine rent rates, while Section 101(3) allows them to increase or reduce payable rents, introduce different rates for different classes of land, or impose new rent rates.
According to the Court of Appeal, any approval required from the NLC under Section 101(5) relates only to the timing of a state’s rent revision exercise, not the amount of the revised rates. In this case, the NLC advised state governments to consider revising their respective rent rates during the 70th National Land Council Meeting held on August 18, 2014.
Berjaya Hills’ appeal to the Federal Court will determine whether the Court of Appeal’s decision was correct, and the outcome may have significant implications for the determination of quit rent rates in Malaysia. As the case progresses, it is likely that the Federal Court will carefully consider the arguments presented by both parties before making a decision. The High Court had ordered the reversal of the enforcement action against Berjaya Hills premises, including the unsealing of buildings and the restoration of water supply, which was fully complied with by the Pahang authorities by September 30.
Implications of the Court of Appeal’s Decision
The Pahang government’s forfeiture of 122 parcels of land owned by Berjaya Hills has been temporarily stayed, pending the disposal of the company’s substantive stay application, which is fixed for hearing on November 27.
