Thu Thiem land auction results proposed to be canceled

SGGP
The Department of Natural Resources and Environment of Ho Chi Minh City has recently sent a report to the municipal People's Committee on the cancellation of the auction winning results and the handling of the amount of money coerced from the bank accounts of the auction winners of four land lots in the Thu Thiem new urban area. 
Accordingly, at the end of 2021, the People's Committee of HCMC issued a decision to recognize the auction-winning results for the Dream Republic Joint Stock Company (lot No.3-5), Sheen Mega Joint Stock Company (lot No.3-8), Binh Minh Investment and Trade Company Limited (lot No.3-9), and Viet Star Real Estate Investment Company Limited (lot No.3-12).

The Tax Department of HCMC also issued notices of land-use fees and registration fees for four companies to pay to the State budget. Binh Minh Investment and Trading Company Limited paid VND145.7 billion, and Viet Star Real Estate Investment Company Limited paid VND588.5 billion, or a 20 percent deposit. However, after that, they sent written requests to stop and terminate the purchase contract of the auctioned land.

Sheen Mega Joint Stock Company paid a deposit of VND203.7 billion and was forced to deduct money from its bank account because its outstanding amount was VND3.79 trillion; the Dream Republic Joint Stock Company paid a deposit of VND115.6 billion and was forced to deduct money from its bank account because it owed nearly VND3.8 trillion.

However, it has been more than 180 days, but these two companies still have not paid to the State budget, so they breached the purchase contract of auctioned assets and will have to lose the paid deposit.

Based on the above developments and the legal provisions on auctions, the Department of Natural Resources and Environment of HCMC proposed the People's Committee of HCMC eliminate the recognition decisions of the auction-winning results of all four companies, Dream Republic, Sheen Mega, Binh Minh, and Viet Star.

For the amount of more than VND1.05 trillion that four companies deposited 20 percent and tax arrears collected by coercive measures, it is recommended to assign the Department of Finance of HCMC and the Department of Taxation of HCMC to consider and handle according to legal regulations on State budget revenue and expenditure.

By Han Ni – Translated by Bao Nghi

Other news