Malton says it's assessing the financial hit from Fed Court's decision to quash Taman Rimba Kiara project

• “The company is waiting to receive and review the grounds of judgement of the Federal Court and shall seek legal advice as to its next course of action in relation to the joint development agreement and to assess the potential impact to the financials of Malton and its subsidiaries,” Malton said in a bourse filing.
• “Any further material development on the above matter will be announced to Bursa Malaysia Securities Bhd accordingly,” it added.

KUALA LUMPUR (April 18): Malton Bhd is now assessing the financial hit the group will have to take following the apex court's decision earlier on Tuesday (April 18) that quashed a luxury service apartment project that Malton's 51%-owned unit Menang Perkasa Sdn Bhd was building on a plot of Taman Rimba Kiara land here.

“The company is waiting to receive and review the grounds of judgement of the Federal Court and shall seek legal advice as to its next course of action in relation to the joint development agreement and to assess the potential impact to the financials of Malton and its subsidiaries,” Malton said in a bourse filing.

“Any further material development on the above matter will be announced to Bursa Malaysia Securities Bhd accordingly,” it added.

Menang Perkasa undertook the project on a joint venture basis with landowner Yayasan Wilayah Persekutuan (YWP), which is known as the corporate social responsibility arm of the Kuala Lumpur City Hall (DBKL). Under the JV, Memang Perkasa was to pay RM160 million to YWP in stages for the right to develop the plot that is located within Taman Rimba Kiara.

The JV had to obtain approval for the project from DBKL, which issued a development order in 2017 for the partners to build eight blocks of luxury service apartments of up to 52 storeys, one block of affordable housing, and an eight-storey podium carpark.

However, the project was met with opposition from residents of Taman Tun Dr Ismail, who claimed it would significantly increase the density of TTDI and irreversibly degrade Taman Rimba Kiara as a green lung.

They then applied for a judicial review to invalidate DBKL's development order for the project, but this was dismissed by the High Court in November 2018. The Court of Appeal (COA) then set aside the High Court's decision in January 2021, citing conflict of interest in DBKL's approval for the project, as both the DBKL mayor and the Federal Territories minister sit on the board of trustees of YWP.

The Federal Court on Tuesday upheld the COA's decision, which granted an order of certiorari quashing DBKL's decision in granting the development order dated July 13, 2017 for the project.

The court has also ordered DBKL, YWP and Menang Perkasa to pay costs of RM100,000, RM80,000 and RM70,000 respectively to the respondents in the suit.

On Tuesday, Malton's shares fell 1.5 sen or 3.37% to close at 43 sen, giving it a market capitalisation of RM224.63 million.