Department of Planning and Investment asks for opinions on revoking many projects from one investor

On June 14, Deputy Director of the Department of Planning and Investment of Quang Nam province Nguyen Hung signed a report to the Provincial People's Committee on the difficulties and obstacles in advising on extending the progress of housing construction investment projects invested by Bach Dat An Joint Stock Company.

According to this report, in Quang Nam province, Bach Dat An Joint Stock Company is the investor of 14 projects. Up to now, the Provincial People's Committee has terminated 4 projects, completed 1 project, 9 projects are being implemented, 5 projects have been partially allocated land, implemented construction, and have not been accepted for completion.

This enterprise has 4 projects including Bach Thanh Vinh Urban Area, Bach Thanh Vinh expansion, 7B expansion and Hera Complex Riverside, which have been approved by the People's Committee of Dien Ban town for compensation and support for site clearance of part of the project. The Provincial People's Committee has not yet allocated land, however the investor has already deployed infrastructure.

During the implementation of the above projects, the investors encountered difficulties and obstacles, mainly in compensation and site clearance. The main reasons were that the people did not agree with the compensation costs; the Covid-19 epidemic situation occurred in 2020 and 2021; the implementation of zoning planning adjustments in Dien Nam - Dien Ngoc New Urban Area affected the progress of the project implementation of the Investor.

As of May 31, the Investor still owes 66.05 billion VND in taxes, including 3.5 billion VND in corporate income tax; 56.18 billion VND in land use fees; 0.37 billion VND in one-time land rental fees for the entire rental period; and 6 billion VND in late payment fees.

Regarding the transfer of funds for compensation and site clearance, the People's Committee of Dien Ban town has approved compensation and site clearance plans for 4 projects: Bach Thanh Vinh Urban Area, Bach Thanh Vinh Urban Area Expansion, Hera Complex Riverside Urban Area, 7B Urban Area Expansion, with a total value of 84.739 billion VND. However, the investor only transferred 15.15 billion VND to the Dien Ban Town Land Fund Development Center.

For projects that have not yet made a deposit to ensure project implementation, the investor must make the deposit in accordance with regulations. For projects that have made a deposit to ensure project implementation, but the progress has expired, the investor requests the competent authority to extend the progress and must implement the fund in accordance with the provisions of the Investment Law. However, the investor does not cooperate to fulfill the obligation to make a deposit and make additional deposits in accordance with the provisions of current investment laws to ensure project implementation.

The Department of Planning and Investment of Quang Nam province commented: "Thus, Bach Dat An Joint Stock Company does not have the financial capacity to continue implementing the projects. Currently, the Tax Department has requested the Department of Planning and Investment to revoke the business registration certificate of Bach Dat An Joint Stock Company because this unit has tax arrears of more than 90 days from the due date according to regulations.

The Department of Planning and Investment submitted to the Provincial People's Committee for consideration and reported to the Provincial People's Committee Party Committee to ask for direction from the Provincial Party Committee Standing Committee on terminating the activities of projects implemented by Bach Dat An Joint Stock Company.

Real estate - Department of Planning and Investment asks for opinions on revoking many projects from one investor — Inside a project invested by Bach Dat An Joint Stock Company.

This Department recommends that for projects that have been granted land by the competent authority and have implemented unfinished infrastructure investment on the assigned area, it recommends determining the volume of implementation, the area that has been compensated, cleared and transferred to the relevant locality to continue implementing investment in the form of public investment to ensure infrastructure connectivity in the area. The volume of work that has been implemented of the project is assigned to the competent authorities to determine the volume and value to re-determine the financial obligations of the investor in accordance with regulations.

For projects that have not been granted land by the competent authority, the inspection organization will determine the volume of work done, the area of land clearance compensation, and establish investment policy procedures to organize bidding to select investors to continue implementation in accordance with current regulations. The investor who wins the project will transfer the funds that have been done according to the volume of work done.

How to handle 3 capital-raising projects?

The Department of Planning and Investment of Quang Nam province also informed that for the 3 projects of 7B Urban Area expansion, Hera Complex Riverside Urban Area, Bach Dat Urban Area, the signing of capital mobilization contracts for the above 3 projects with Hoang Nhat Nam Investment Joint Stock Company and GAIA Real Estate Investment Company Limited, the legal documents of this project are incomplete, there is no infrastructure, financial obligations to the state have not been fulfilled, and they have not been guaranteed according to regulations.

In addition, the land plots in these 3 projects have been transferred by buyers many times in reality, when the progress of the above projects is not guaranteed as committed to the buyers, causing complaints, lawsuits, gathering crowds at state agencies, creating hot spots in Quang Nam province. The settlement of disputes between people and distribution units, investors regarding land distribution and deposit agreements is resolved through initiating related civil disputes.

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