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Monday, September 26, 2022

Thu Thiem auctions: Two winners yet to pay land use costs

The Saigon Times

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HCMC — Two of the four enterprises that won the auctions for four land lots in the Thu Thiem New Urban Area in HCMC’s Thu Duc City on December 10 last year have proposed canceling their purchase contracts, while the remaining two have yet to pay the land use entitlement costs, according to the HCMC Tax Department.

Seventeen days have passed since the deadline for the payment of the entitlement, it said.

On December 12 last year, Dream Republic Corporation won the auction for the 3-5 land lot and Sheen Mega JSC for the 3-8 land lot. The two lots spanning some 6,400 and 8,500 square meters, respectively, were auctioned for VND3.82 trillion and VND4 trillion, or 6.6 and four times higher than the starting price of over VND578 billion and VND1 trillion, respectively.

Meanwhile, lots 3-9 and 3-12 covering an area of over 5,000 and 10,000 square meters, respectively, fetched more than VND5 trillion and VND24.5 trillion, or seven and 8.3 times higher than the starting price, respectively.

However, Viet Star Real Estate Investment Co. Ltd, a subsidiary of Tan Hoang Minh Group, and Binh Minh Trading and Development Investment Co. Ltd., who won the auctions for the two plots, have proposed canceling their purchase contracts, which would entail their losing their deposits of nearly VND600 billion and VND140 billion, respectively.

On January 6, the HCMC Tax Department had asked the winners of the land auctions to pay the registration fee and half the land use cost by no later than 30 days. The remaining land use cost was to be submitted within 90 days of the announcement.

Though the first deadline passed 17 days ago, the enterprises have yet to fulfill their obligations.

After the April 6 deadline for the payment of the remaining land use cost, if Dream Republic Corporation and Sheen Mega JSC fail to pay the fee and cost, the HCMC Tax Department may freeze their bank accounts, seize their invoice amount, or even revoke their licenses. However, the penalties will need to be in line with the articles of the land sale contracts.

If the enterprises fail to pay the registration fee and the land use cost or make an incomplete payment, they will lose their deposits, which will be added to the State budget.

In addition, the Property Auction Service Center under the HCMC Department of Justice will report them to the municipal Department of Natural Resources and Environment, which will then ask the HCMC government to cancel the land auction results. Thereafter, it will be up to the HCMC government to decide if the land lots will be put up for auction again or used for other purposes.

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