Ekurhuleni’s no-pay land grab drags property rights through the mud

A city is pulling legal gymnastics to avoid paying for land it seized. Ekurhuleni municipality faces a major trial over confiscating a thirty-four-hectare plot in Driefontein, Boksburg, without compensation. The property, valued in the tens of millions, was taken for housing. The city now seeks to rescind its own expropriation decision to dodge the courtroom.

Critics call the move a bad-faith delay tactic. The owner, Business Venture Investments 900, argues that the municipality approved residential plans for the land earlier. The city blames new sinkhole risks from illegal mining on adjacent land it controls. The owner counters that environmental neglect caused any problems.

Mediation failed to resolve the seven-year dispute. The owner claims cumulative losses exceeding fifty-five million rand from legal costs and lost asset use. The city's legal advisors reportedly warned that defending a zero compensation stance under the old law would be difficult.

This case tests the limits of expropriation powers amid a new national act allowing nil payouts. Observers warn that it sets a dangerous precedent for property rights, using endless litigation to exhaust owners. The outcome could influence how governments handle private land grabs across the country.