The Prime Minister has recently issued an urgent dispatch to the Ministers of Natural Resources and Environment, Construction, Finance, Justice, and Public Security, as well as the Chairpersons of the People’s Committees of provinces and centrally-run cities. The dispatch addresses certain limitations and issues in land-use right auction activities in several localities, including abnormal high bidding prices and signs of price manipulation, collusion, or market disruption for personal gain.
This situation has attracted public attention and could negatively impact socio-economic development, the investment and business environment, and the real estate market. In response, the Prime Minister has instructed the Chairpersons of the People’s Committees of provinces and centrally-run cities to direct competent agencies and units to review and ensure the legality, transparency, and fairness of land-use right auctions in their respective areas. It is crucial to promptly detect and strictly handle any violations of the law related to land-use right auctions and put a stop to exploitative practices that disrupt the market.
The dispatch also emphasizes the importance of conducting a thorough review and adjustment of land prices in the price tables used for land-use right auctions. This ensures that the starting bid prices are in line with the invested infrastructure and the actual land price levels in the respective areas. Additionally, attention should be given to shortening the deadline for payment of winning bids and setting appropriate initial payment amounts to reduce bid abandonment. The dispatch further instructs the selection of suitable auction forms and methods to prevent collusion, bid-rigging, or price manipulation.
To further mitigate potential negative impacts, the Prime Minister has requested the management and monitoring of information related to the auction participation history and payment accounts of winning bidders. This is particularly important in cases where individuals or groups exhibit abnormal behaviors, such as registering for multiple land plots in the same auction or submitting abnormally high bids, only to forfeit their deposits later. The dispatch also calls for the addition of penalties for violations in the auction field, specifically addressing collusion, bid-rigging, price manipulation, and exploitative practices that disrupt the market.
Furthermore, the Prime Minister has suggested that the Minister of Public Security direct functional units and local police forces to detect, investigate, and strictly handle organizations and individuals who violate the law in land-use right auctions, especially those subject to criminal liability.
Previously, on August 21, 2024, the Prime Minister had issued a dispatch instructing localities to promptly rectify land-use right auction activities, which yielded positive results and contributed to the improvement of auction practices, as well as revenue generation for local budgets.
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