Malaysia legislation
Article 85
Article 85
Grant to Federation of land reserved for federal purposes
(1)
Where any land in a State is reserved for any federal purposes, the Federal Government may require the State Government, and it shall then be the duty of that Government, to cause to be made to the Federation a grant of the land in perpetuity without restrictions as to the use of the land, but subject to the payment of a premium to be determined in accordance with Clause (2)
and to the payment annually of an appropriate quit rent.
(2)
The premium referred to in Clause (1) shall be equal to the market value of the land reduced by—
(a)
the market value of any improvements made (otherwise than at the expense of the State) while the land was in use for federal purposes; and
(b)
the amount, if any, paid by the Federation, or paid before
Merdeka Day by the Government of the Federation of
Malaya, in respect of the cost of acquisition of any interest in the land by the State Government.
(3)
Without prejudice to Clause (1), where any land in a State is reserved for any federal purposes, the Federal Government may offer to release the land to the State on condition that the
State pays to the Federation the market value and the amount mentioned in paragraphs (a) and (b) of Clause (2); and if the
State Government accepts the offer the reservation shall cease.
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[Article 83]