The City of Ekurhuleni (CoE) has abruptly backtracked on a landmark land reform case that was set to test land expropriation without compensation in court.
The case centres on a 34-hectare vacant property in Boksburg, known as Portion 406 of the Farm Driefontein. The land was expropriated in 2019 from Business Venture Investments 900.
Ekurhuleni intended to develop around 2 000 social housing units for low-income families on the site. It also aimed to test how far Section 25 of the Constitution could be pushed.
The Municipality issued an expropriation notice in February 2019 and took possession two months later. Crucially, it planned to pay no compensation.
The property owners strongly opposed the move. They argued the land had significant market value and pending development applications, estimates ranged from R30 million to as much as R64 million.
Ekurhuleni reverses its decision
After years of legal wrangling, court-ordered mediation began in October 2025, but failed to produce a settlement. A trial was then scheduled to start in the Gauteng High Court on 2 February 2026.
However, the CoE has now attempted to reverse its original land expropriation decision. It has cited concerns about sinkholes on the land – following an environmental assessment – as a key reason why the site is now “unsuitable for human settlement.”
Critics say this explanation rings hollow. They argue the move is designed to avoid a definitive court ruling on zero compensation.
Business group Sakeliga, which has closely followed the case, has accused Ekurhuleni of acting in bad faith. It claims the Municipality is using legal manoeuvres to delay the matter.
“Since September 2025, the City has jeopardised mediation and continued refusing to pay compensation for its expropriation of the property,” Sakeliga said.
“It is now trying to block the matter going to trial through additional protracted lawfare, hoping to avoid a court order forcing them to compensate the former owner.”
A test case for land reform
According to Sakeliga, the CoE was advised that it would struggle to defend a nil compensation award.
The expropriation occurred under the 1975 Expropriation Act, which did not allow for zero compensation.
This differs from the new Expropriation Act, signed into law in December 2024. That legislation explicitly provides for expropriation without compensation in certain cases.
Sakeliga says the council resolved in late 2025 to rescind its 2019 decision. It also decided to launch a court review of its own actions.
The group argues this effectively blocks the landowner from having compensation determined by a court. It warns the dispute could now drag on for years.
At stake is more than a single property. The outcome could shape how future land expropriation without compensation cases unfold across South Africa.
