CONTROVERSIAL carpet merchant Deepak Jaikishan has filed a RM676 million suit against former prime minister Najib Razak for conspiracy and using his position to exert undue influence over the sale of 90ha in Kapar, Selangor.

The land was to be the site of the RM100 million National Defence Study Centre, which was supposed to be constructed in 2007.

The suit, seeking RM600 million in general damages, RM50 million in exemplary damages and RM26 million in aggravated damages, also named Najib’s wife, Rosmah Mansor, Boustead Holdings Sdn Bhd and its subsidiary, Bakti Development Wira Sdn Bhd, as defendants.

Filed by law firm Haniff Khatri & Co at the Kuala Lumpur High Court last Friday, Deepak’s suit seeks either the award of the amount or the return of two plots of land to his company, Astacanggih Sdn Bhd.

In his statement of claim served today, Deepak said Najib had conspired to defraud him, and interfered in a property deal using undue influence over the sale of the land.

A privatisation agreement was made on June 8, 2005, with Awan Megah Sdn Bhd to construct the defence centre. Deepak was a minority shareholder of the company, which was owned by former Selangor Wanita Umno head Raja Ropiaah Abdullah.

In his statement of claim, Deepak described Raja Ropiaah as a close associate of Najib and Rosmah.

In June 2007, Awan Megah offered Astacanggih the sale of the land at RM118.5 million via an acquisition agreement, in which Astacanggih would pay RM13 million in cash, and with a bank guarantee of RM72.5 million as land bond.

Deepak said he also paid RM30 million through Najib’s brother, Ahmad Johari Razak, prior to the acquisition agreement.

He said Najib, who was defence minister then, could approve the acquisition agreement.

He said later, Raja Ropiaah breached the agreement to provide him the land title, to be transferred to Astacanggih.

A suit was filed against Raja Ropiaah in 2011. Deepak said he was then forced to withdraw the suit after being pressured by the authorities.

He said Najib had promised to compensate him by using Boustead Holdings, whose majority shareholder is Lembaga Tabung Angkatan Tentera (LTAT), to purchase 80% of Astacanggih’s shares.

In December 2012, Deepak sold his shares in Astacanggih to LTAT subsidiary Bakti Development Wira for RM30 million.

He claimed losses, as the market value of the disputed land was around RM500 million.

Deepak said Boustead Holdings and Bakti Development Wira entered into a separate agreement a week later to sell a portion of the land at RM60 per sq ft to listed company UMW, when the land was priced at RM14 per sq ft.

The land was sold to UMW by Boustead Holdings for RM640 million when the market price was RM130 million, he added.

As a result, said Deepak, he and his company lost about RM300 million.

He is also asking for a court order that the Companies Commission of Malaysia return the 80% holding in Astacanggih.

Case management has been fixed for November 14.

Deepak’s younger brother, Rajesh Jaikishian, and their company, Radiant Splendour Sdn Bhd, are separately suing Najib and Rosmah for RM52.6 million.

The plaintiffs said they had been forced to take out a RM198 million loan from Bank Rakyat on behalf of the Pekan MP and his wife in 2008.

They said they had to use their ownership of a master title for 80 condominium units in Kuala Lumpur as the deed of assignment.

Problems arose in 2013, when the brothers were forced to enter into a settlement agreement with Bank Rakyat following their failure to service the loan.

Deepak, his brother and their company also named Johari, former Tabung Haji chairman Abdul Azeez Abdul Rahim and Bank Rakyat chairman Shukry Mohd Salleh as defendants in the suit, which was filed on September 12.

The plaintiffs said the loan default resulted in the appointment of Johari and his firm to sell the condominium units at a loss in 2014.

The high court has set November 30 to hear the application by Deepak and his brother to consolidate their suit and Bank Rakyat’s suit against them. – October 17, 2018.