Hong Kong's leading property developers have banded together to challenge the Government over a system of charging rent on vacant land, claiming it violates the Basic Law.
A massive class action began at the Lands Tribunal yesterday, with 58 companies - subsidiaries or associates of eight leading developers - crossing swords with the Government.
The companies are taking it to task over the practice of charging rent on vacant land - either sites pending development, or those at different stages of development or redevelopment - at the yearly rate of 3 per cent of the rateable value of the land.
The companies claim the rateable value can only be determined by the current physical state of the land and any potential value it may have for development is irrelevant.
If the land is not capable of being occupied and deriving income, the proper rateable value is nil or nominal, they argue.
Companies taking part include subsidiaries or associates of Cheung Kong Group, Chinachem Group, Hang Lung Group, Henderson Group, Nan Fung Group, Sino Group, Sun Hung Kai Properties Group and Wheelock Group.