Turn public land into private land
The Government Inspectorate (TTCP) has just announced its conclusion on the conversion of land use purposes from production and business to land business and housing construction in the period 2011-2019 of state-owned enterprises and equitized enterprises.
Notably, the conclusion on the 14,346m2 land plot on Phap Van Street, Hoang Liet, Hoang Mai is noteworthy.
According to the conclusion, before equitization, the Agricultural Construction and Rural Development Corporation (Agricultural and Rural Development Corporation), the relevant departments and branches did not prepare documents to submit to the Hanoi People's Committee for decision on land lease, sign land lease contracts, and did not properly implement the Prime Minister's direction in Directive 245/TTg.
Hanoi City and the Agriculture and Rural Development Corporation did not provide records and documents as the basis for leasing land and granting land use right certificates for 14,346 square meters, which is not in accordance with Decree 43 of the Government.
The General Department of Agriculture and Rural Development contributed 100% of the capital to establish Phuong Dong Investment Company Limited (Phuong Dong Company) to implement the project (in 2017), the capital contribution was mainly the use and commercial value of the land use right of 14,375m2 of leased land with annual land rent payment, which is not in accordance with the provisions of the 2013 Land Law.
This action led to the Hanoi People's Committee deciding to reclaim land from the Agriculture and Rural Development Corporation and hand it over to Phuong Dong Company to rent as an office.
Then, Phuong Dong Company was allowed to change the purpose of 14,346m2 to implement the Housing, Office, Trade and Service Complex Project, which was not in accordance with the land use plan in the approved equitization plan of the Agricultural and Rural Development Corporation.
According to the conclusion announcement, the area of 2,503m2 is not residential land, but the Hanoi People's Committee decided to allocate land to Phuong Dong Company in the form of land allocation with land use fee collection, which is not in accordance with the cases of land allocation stipulated in the 2013 Land Law.
In addition, Phuong Dong Company sold 11 townhouses and 110 apartments for sale before the Department of Construction granted a construction permit and notified that it was eligible to sell future housing, which is a violation of the 2014 Law on Real Estate Business; selling 312 apartments for short-term lease under the form of long-term ownership is not in accordance with the investment policy approved by Hanoi.
Violation of conversion of use purpose
Meanwhile, at the investment project to build a commercial, service and housing center at 275 Nguyen Trai Street, Thanh Xuan District, Hanoi, the Government Inspectorate also pointed out a number of specific violations.
According to the inspection conclusion, the Hanoi People's Committee reclaimed 23,380 square meters of production land of Precision Mechanical Joint Stock Company No. 1 and handed it over to Hung Viet Trading Joint Stock Company in the form of land allocation with land use fee collection to implement a housing project, without compensation or site clearance for auction of land use rights as prescribed.
The Hanoi People's Committee assigned Hung Viet Company 3,557 square meters of land (belonging to the 20% land fund) in the form of land allocation with land use fee collection to implement a housing project for officials and civil servants of the Hanoi Department of Natural Resources and Environment, violating Clause 1, Article 58 of the 2003 Land Law.
Regarding the implementation of financial obligations, the Government Inspectorate pointed out that the base block of the N01 housing project was approved to adjust and add an elevator outside the building with an area of 16.8 m2, adding a mezzanine floor area of 547 m2, and a technical floor area of 1,888 m2, but the additional financial obligations have not been determined and implemented.
Regarding capital contribution and share transfer, Precision Mechanical Joint Stock Company No. 1 transferred 3.2 million shares at Hung Viet Company to Hoang Huy Financial Services Investment Joint Stock Company at par value, without auction or share price appraisal, violating Government regulations.
At the same time, this company contributed capital to the joint venture in cash, in fact in the value of land use rights, expressed through the capital contribution in part to support the relocation and compensation of assets on the land, which are the assets of Precision Mechanical Joint Stock Company No. 1, which is not in accordance with the provisions of land law.
