Hung Ngan Group's Kim Do Policity project was found to have many violations.

Selling a house without a guarantee contract

According to the Inspection Conclusion, Kim Do Policity is a project to repay counterpart funds for the Investment Project to build, renovate and upgrade TL286 from Cho town to Do Lo bridge, Yen Phong district in the form of BT. This project was approved by the People's Committee of Bac Ninh province in the Investment Policy Decision No. 95/QD-UBND dated February 9, 2018, with an area of ​​75 hectares, a total investment of more than 3,569 billion VND, and construction progress until 2025.

At the time of inspection, Hung Ngan Group had constructed 92/509 townhouses, 30 villas that had not yet been built and was granted 192 Land Use Right Certificates by the Department of Natural Resources and Environment of Bac Ninh province, corresponding to 513/539 lots. The company had signed contracts to buy and sell 152/539 future houses to customers and had handed over to customers 6 townhouses with completed rough construction.

Hung Ngan Group signed sales contracts and handed over a number of apartments to customers without a bank guarantee contract (Photo: Investor's website)

However, despite having signed contracts for the sale and purchase of future housing with many customers, the Inspectorate discovered that Hung Ngan Group had not yet signed a Guarantee Contract with a commercial bank with sufficient capacity to guarantee the financial obligations of the Investor to customers in the sale, lease, and purchase of future housing. This act violated Article 56 of the 2014 Law on Real Estate Business, which stipulates the guarantee in the sale and lease-purchase of future housing as follows:

“Before selling or leasing future housing, real estate project investors must have a commercial bank with sufficient capacity to guarantee the investor’s financial obligations to customers when the investor fails to hand over the housing according to the schedule committed to customers. The State Bank of Vietnam has announced a list of commercial banks with sufficient capacity to guarantee future real estate business.

The scope, conditions, contents and guarantee fees are agreed upon by the parties but must ensure the guarantor's performance of its responsibilities as prescribed in Clause 3 of this Article and must be made into a contract. The investor is responsible for sending a copy of the guarantee contract to the buyer or lessee when signing the purchase or hire purchase contract. The guarantee contract is valid until the house is handed over to the buyer or lessee, etc.

In addition, the Inspection Conclusion also pointed out that Hung Ngan Group has not yet paid to the State budget more than VND 1,755 billion (late payment of land use fees) according to Notice No. 4996/TB-CCTKV-KDT dated March 25, 2024 of the Tu Son - Yen Phong Regional Tax Department on tax debt notification.

There are still many shortcomings and limitations in project implementation.

Along with violations in real estate business and late tax payment, the Inspection Conclusion also pointed out many existing problems in the process of implementing and constructing the Kim Do Policity Project. In particular, the responsibility belongs to Hung Ngan Group as determined by the Inspection Conclusion related to the following existing problems:

The implementing unit constructed the ramp for the disabled to access and use in the wrong location, not in accordance with design standards; Constructed the curb with stone flower pots on the sidewalk of traffic routes at a height not in accordance with the approved construction design drawings; Constructed and installed the height of the railing outside the balcony of the townhouses not ensuring the minimum prescribed height.

The flower garden and square items are behind schedule according to Decision No. 95/QD-UBND of the Provincial People's Committee on approving the investment policy of the Project in Sub-Area A - Area 3. At the time of inspection, the flower gardens under construction, the square had completed the leveling part, and was waiting for the appraisal and approval of the construction drawings to complete the project.

Perspective of Kim Do Policity project of Hung Ngan Group (Photo: Investor's website)

Constructing an administration building, garage, toilets, etc. using prefabricated steel structures in the planned area. However, the company commits to dismantling these structures to return the site at the end of the Project.

Construction of 92/509 townhouses (4 floors + 1 roof floor) is not in accordance with the Investment Policy Decision No. 95/QD-UBND dated February 9, 2018 of the People's Committee of Bac Ninh province, allowing the construction of 4-storey townhouses. The Company is carrying out procedures to adjust the Investment Policy Decision to submit to the competent authority for approval according to the provisions of the Law on Investment, however, at the time of inspection, the adjustment of the Investment Policy Decision has not been completed.

With the above violations and shortcomings, the Inspectorate has recommended that the Department of Construction inspect, review, consider and handle administrative violations against Hung Ngan Group in not signing a Guarantee Contract with a commercial bank with sufficient capacity to guarantee the financial obligations of the Investor to customers in the sale, lease and purchase of future housing.

Recommend Yen Phong District People's Committee to organize inspection, review and consider, handle administrative violations in construction that the Inspection Team pointed out above according to the authority of Hung Ngan Group and the following units: Preparing basic design drawings; Designing construction drawings and estimates; Consulting and supervision; Construction.

In addition, the Inspection Conclusion also requires Hung Ngan Company to seriously review and overcome the shortcomings and limitations in the implementation of the Project as pointed out by the Inspection Team. This includes fully fulfilling financial obligations and only transferring the Project's land lots and trading in future housing when meeting the conditions and receiving the approval of the competent state management agency.

Source: https://www.congluan.vn/ban-nha-khi-chua-co-hop-dong-bao-lanh-thanh-tra-tinh-bac-ninh-chi-ra-hang-loat-sai-pham-tai-du-an-kim-do-policity-cua-hung-ngan-group-post315805.html