The Inspector’s Verdict on the Three Real Estate Projects in Quang Nam

On March 28th, the Inspectorate of Quang Nam province announced that it had just issued a conclusion on inspecting the compliance with legal regulations of the investors of three real estate projects in Dien Ban town, Quang Nam province.

The three projects include: Saigon Thanh Dat Agricultural Investment Joint Stock Company’s (Saigon Thanh Dat Company) Cau Hung – Lai Nghi Residential and Service Area Project Phase 1; Thien My Production – Trading – Service Co., Ltd.’s Residential Area No. 1 (Dien An Ward) project; and Dien Ban Investment and Construction Joint Stock Company’s Vi Em – Ha Dua Urban Area Project.

The inspection revealed that the investor selection process for all three projects by the competent authorities did not comply with the Bidding Law. In addition, the Inspectorate of Quang Nam province pointed out the shortcomings and weaknesses at the three projects.

Regarding the Cau Hung – Lai Nghi Residential and Service Area Project (Phase 1), the Inspectorate of Quang Nam province determined that the land use fee level for the project, approved by the Provincial People’s Committee in Decision No. 2839/QD-UBND dated September 6, 2019, was based on incorrect consultation, and there were adjustments to the form of transfer that did not comply with regulations, resulting in state budget losses. This issue was concluded by the Central Inspection Commission in Official Dispatch No. 581-TB/UBKTTW dated November 30, 2023.

In addition, Saigon Thanh Dat Company has been found to have mobilized capital in the form of interest-free loan contracts combined with agreements on registering land plots (with lot numbers and areas according to the approved detailed planning) and land transfer prices), which is not in accordance with Clause 2, Article 19 of Decree No. 99/2015/ND-CP dated October 20, 2015 of the Government.

The Inspectorate of Quang Nam province determined that Saigon Thanh Dat Company mobilized capital through two forms, with 213 individuals, corresponding to 428 land lots. The total revenue amounted to over VND 227.7 billion, of which over VND 220 billion was collected from secondary investors.

The Chief Inspector of Quang Nam province requested Saigon Thanh Dat Company to seriously rectify and put an end to the mobilization of capital by dividing land use rights in a manner contrary to the law, and to be responsible for any disputes arising from this illegal capital mobilization.

The Inspectorate proposed that the People’s Committee of Quang Nam province direct the Council for Determination of Specific Land Prices, the Department of Construction, and relevant agencies and investors to carry out procedures to re-determine the investment costs of the projects to deduct the land prices of the projects in accordance with regulations.

It is suggested that the Tax Branch of Area XII inspect, review, and guide Saigon Thanh Dat Company to declare and pay the missing value-added tax for land use right transfer activities at the project up to the time of the conclusion of the inspection to the state budget…