The main building of the King Palace project.
On April 17, the Lam Dong provincial People’s Committee issued a document regarding the repossession of the King Palace – Dinh I project on Tran Quang Dieu street (Ward 10, Da Lat City ) and the development of an auction plan for the right to lease.
Accordingly, the Lam Dong Provincial People’s Committee assigned the Department of Finance to preside over and coordinate with the Department of Planning and Investment, Department of Construction, Department of Natural Resources and Environment, Department of Agriculture and Rural Development. The Da Lat City People’s Committee requested the Hoan Cau Da Lat Joint Stock Company to cease business operations at King Palace and transfer assets and land belonging to this project to the Da Lat City People’s Committee for management.
After repossession, functional agencies will develop an auction plan for the right to lease, submit it for appraisal and approval, and then organize the auction.
Before the auction is completed, the Da Lat city People’s Committee is responsible for receiving and managing the assets and land of the King Palace project; organizing protection and preservation, and preventing deterioration, damage, and abandonment.
The Provincial People’s Committee also requested Hoan Cau Da Lat Joint Stock Company to immediately cease exploitation and business operations at King Palace; hand over assets and land to the Da Lat City People’s Committee for management before April 30, 2024.
According to information from the Da Lat City People’s Committee, Dinh I was built in the 1940s on a large pine hill. After 1975, Dinh I was put into tourist exploitation . In 2014-2015, the Lam Dong Provincial People’s Committee leased land (for 50 years) and forest to Hoan Cau Company to implement the King Palace project with a total investment of 700 billion VND.
However, in 2020, the Government Inspectorate pointed out many violations and requested the Lam Dong Provincial People’s Committee to收回 dự án.
Specifically, Lam Dong leased the house and land of Dinh I to Hoan Cau Joint Stock Company to implement the King Palace project while it was not included in the land use plan for the period 2011-2015, which is a violation of the Land Law. On the other hand, the lease of the house and land of Dinh I and the villas on the land area of 1.86 ha without auction is a violation of Article 43 of Decree No. 52/2009/ND-CP.
On August 26, 2021, the Lam Dong Provincial People’s Committee issued a document terminating the operation of the King Palace project and assigning related units to implement it. In November 2023, the Da Lat City People’s Committee issued a notice stating that the lease contract for the King Palace project would end after 60 days.
Hoan Cau Joint Stock Company did not comply with this notice and submitted a petition, but the Lam Dong Provincial People’s Committee continued to request that the investor comply with the termination of the King Palace project.
Regarding the Department of Natural Resources and Environment, from June 2022 to January 2024, the Department invited representatives of Hoan Cau Da Lat Joint Stock Company to work three times to repossess the land and request the handover of land, but to no avail.
One of the issues raised by the investor is that the amount of money calculated by the locality to reimburse the investment cost (58.6 billion VND) in the King Palace project is much lower than the amount of money the enterprise has invested in this area.
