A Request to the Investor of 8B Le Truc Construction to Cover the Costs of Demolishing the Illegal Structure

The 8B Le Truc building in Dien Bien Ward, Ba Dinh District, Hanoi, was once notorious for its flagrant violations of construction regulations. Even after nearly four years of forced demolition and the removal of illegal structures, the building remains mired in controversy as the developer has yet to reimburse the authorities for the costs incurred during the enforcement process.

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According to the Ba Dinh District People’s Committee, to carry out the demolition of the violations at the 8B Le Truc project, the Ba Dinh District People’s Committee advanced more than VND 22 billion from the district budget. This included an advance of approximately VND 5.2 billion in 2016 and nearly VND 17 billion in 2020. Since the completion of the handling of the violating works, the Ba Dinh District has repeatedly requested the project investor, Le Truc Garment Joint Stock Company, to reimburse the demolition expenses. However, the company has not yet fulfilled its obligation to refund this amount to the state budget.

In 2015, according to inspections by Hanoi’s inter-agency authorities, the 8B Le Truc building had multiple violations compared to its construction permit. (Illustrative image: KT)

The Ba Dinh District People’s Committee also shared that during the discussions to settle the reimbursed budget, they had repeatedly invited the investor to meetings to resolve the issue conclusively. However, the Le Truc Garment Joint Stock Company has been consistently absent from these meetings.

In the last two months alone, the Ba Dinh District People’s Committee has sent out five invitations, but the company has failed to attend any of the meetings.

Mr. Nguyen Anh Dung, Chief of Office of Ba Dinh District People’s Committee, stated that according to Clause 4, Article 95 of the 2014 Housing Law, the cost of forced demolition of violating constructions shall be borne by the owner or investor. Therefore, Le Truc Garment Company is responsible for reimbursing the cost of forced demolition of the violating construction at 8B Le Truc to the Ba Dinh District People’s Committee.

Mr. Dung added: “The district has repeatedly sent documents to the investor requesting reimbursement of the expenses, but so far, the investor has not fulfilled this obligation…”

From the perspective of the investor, Mr. Le Van Hung, Deputy General Director of Le Truc Garment Joint Stock Company, affirmed that the company is not evading its obligation to reimburse the budget for the amount that Ba Dinh District has advanced. At the same time, he requested that the Ba Dinh District People’s Committee promptly hand over the settlement dossier of the demolition expenses to complete the refund procedure.

“We are not stalling. We need to know the exact amount to be paid. The Ba Dinh District People’s Committee has the responsibility to urge the ward and the contractor to complete the dossier so that we can make the payment…” – said Mr. Hung.

In 2015, according to inspections by Hanoi’s inter-agency authorities, the 8B Le Truc building had multiple violations, including constructing approximately 16 meters higher than permitted, equivalent to five extra floors, and an actual floor area of 6,000 m2 more than stated in the construction permit.

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