Aras Niaga sues Kedah SSI for alleged breach of land lease agreement

ALOR SETAR: Aras Niaga Group Berhad is suing Kedah State Secretary Incorporated (SSI) for RM310mil for an alleged breach of a land lease agreement signed in 2020.

The group’s lawyer, Firhat Muhammad Fikris said the writ of claim named Kedah SSI, its general manager, and the Kedah state secretary as defendants.

He said the claims against the defendants were filed on March 25, after Kedah SSI instructed Aras Niaga to return the 255-hectare land in Mukim Semeling, Kuala Muda, which had previously been leased legitimately.

“The plaintiff is seeking damages amounting to RM300mil for breach of promise under the additional agreement, as well as compensation totaling RM10mil for the work carried out by the plaintiff in executing the project on the site,” he said at a press conference here on Sunday (March 31).

Also present was Aras Niaga Group Berhad, founder and executive chairman, Datuk Muhamad Annas Mohamad Anuar, who said the company had plans to collaborate with Permodalan Kedah Berhad to develop an iron ore mine on the site.

He noted that the company had invested significant capital to secure the site, undertaking thorough studies in the area before outlining the potential for iron ore mining operations, which could contribute to the state’s revenue generation.

“Regrettably, after the presentation in March 2021, Kedah SSI no longer entertained our requests for mining licenses and allowed the status of this project to remain in limbo. Moreover, in a meeting with the Kedah SSI general manager, we were asked to return the land,” he added.

He clarified that according to the agreement, the company secured a 45-year lease for the site and fulfilled all prerequisites necessary to initiate the development of the iron ore mine, up to the stage outlined in the additional agreement.

“However, in the end, we were not granted the mining license, and it is clearly detrimental to the company,” he said. – BK