The government of Penang has blocked all work and transactions relating to land owned by 1MDB Real Estate (Ayer Itam) Sdn Bhd (1MDB RE) on the island, reported Free Malaysia Today.
This comes as the state has placed a Registrar’s Caveat on the company’s three plots of land in Penang.
As at July 2018, 1MDB RE owns two parcels of land in Paya Terubong and another plot in Air Itam, with a combined area of 94.7ha, said Chief Minister Chow Kon Yeow (DAP-Padang Kota) in a written reply to Joseph Ng Soon Siang (DAP-Air Itam).
He revealed that the company’s lawyers had informed the Land and Mines Department, via a letter, that the company’s name had been changed. However, no development plans had been submitted for the lots.
1MDB RE, which was renamed to Ayer Itam Properties Sdn Bhd, wanted the ownership papers of the parcels of land to reflect the name change.
“However, the authorities have yet to start the name change process on the said land. Besides that, the state has inserted a Registrar’s Caveat on all of the said land,” said Chow.
A provision under Section 319 and 320 of the National Land Code, a Registrar’s Caveat is placed on certain parcels of land to prevent improper dealing or fraud and to protect the federation’s interests, among others.
Finance Minister Lim Guan Eng has said last month that the Air Itam lot was secretly sold to Cayman Island-based firm Silk Road Southeast Asia Real Estate Ltd.
The land, which was acquired for RM1.38 billion by 1MDB RE, was sold on 24 August 2017 for RM2.7 billion, or for a net profit of RM1.32 billion.
The sale was made by disposing 1MDB unit My City Ventures Sdn Bhd to Silk Road through a share sale agreement, said Lim.
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