"Ħadli l-art il-Gvern": Expropriation in Malta
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Chapter 573 of the Laws of Malta provides the legal framework through which the Government, acting through the Lands Authority, may acquire private property either by absolute purchase or by taking possession and use of the property for a period not exceeding ten years, for a public purpose.
In everyday language, this is the legislation most people are referring to when they say "ħadli l-art il-Gvern" ("the Government took my land"). Whether the acquisition is for a road, public infrastructure or another public project, Chapter 573 regulates the circumstances in which the Government may expropriate private property, the compensation payable to affected owners, and the legal remedies available to challenge the acquisition.
The process begins when the Chairperson of the Board of Governors of the Lands Authority issues a Declaration stating that the land is required for a public purpose. This Declaration must be published in the Government Gazette and announced in two local newspapers.
The Declaration must include a clear description of the land being acquired, the public purpose for which the land is required; and the amount of compensation that the Lands Authority is offering to pay. The Declaration must also be accompanied by an architect’s valuation and a site plan identifying the land referred to in the Declaration.
Where the acquisition is for possession and use (“pussess u użu”) rather than outright purchase (“akkwist b’xiri assolut”), the Declaration must also specify the period during which the Authority intends to retain possession of the land, provided this does not exceed ten (10) years. It must also state the total amount of compensation being offered as acquisition rent for the entire period.
Whenever physically possible, the Lands Authority must, within fourteen (14) days of publication of the Declaration in the Government Gazette and at least a one time newspaper announcement, affix a copy of the Declaration and the site plan on or near the property concerned. Within the same period, notice of the Declaration must also be displayed on the notice boards of both the Local Council and the Police Station in the locality where the land is situated.
Can the Expropriation Be Challenged?
Yes, Chapter 573 expressly grants interested parties the right to challenge the expropriation.
For Declarations issued after the coming into effect of Act XVII of 2017, the principal ground of challenge is whether the expropriation genuinely serves a public purpose. Any interested person wishing to contest the public purpose must open a court case in front of the Land Arbitration Board within fifty (50) days from the publication of the Declaration. Through this court case, one would demand the cancellation of the Declaration. If no such court case is filed within the fifty day, the Lands Authority becomes entitled to enter the land and take possession of it.
Where no challenge to the public purpose is made, the Lands Authority must, within fifteen (15) days after the expiry of the 50-day contestation period, deposit the compensation stated in the Declaration into a bank account that guarantees a minimum annual rate of interest. Different running time applies when the Declaration is challenged.
Once this deposit has been made, ownership of the land is automatically transferred to the Government by operation of law. Ownership passes to the Government free and unencumbered by any charges, hypothecs or privileges, without the need for any further legal formalities.
A landowner may also contest the amount of compensation offered in the Declaration. Unlike a challenge to the public purpose, a court case disputing the amount of compensation must be filed within five (5) years from the publication of the Declaration. This application must also be filed before the Land Arbitration Board.
In this court case, the owner must specify the amount of compensation that he or she believes is justly due. If no court case is filed within the five-year period, the owner's entitlement to compensation will generally be limited to the amount offered and deposited by the Lands Authority, together with any accrued interest.
Importantly, a landowner who withdraws the amount offered in the Declaration and deposited, does not forfeit his right to dispute the amount of compensation and claim a higher compensation in proceedings before the Land Arbitration Board. The owner may accept the compensation deposited by the Lands Authority without prejudice to the right to pursue proceedings seeking additional compensation before the Land Arbitration Board.
The time limits imposed by Chapter 573 are strict, and failure to act within the prescribed periods may result in the loss of important legal rights.
For this reason, any landowner who becomes aware of the publication of a Declaration affecting his or her property should seek legal advice without delay to ensure that the appropriate remedies are pursued within the legal timeframes and that the owner's rights are fully protected.
