On October 26, information from Lam Dong Provincial People's Committee issued a notice on the revocation of 3,377m2 of land assigned to Delta Tourism Joint Stock Company (Delta Company) to implement the project of Dalat Plaza Hotel and Commercial Center Complex (abbreviated as Dalat Plaza).
This land is located on Phan Nhu Thach Street, Ward 1, Da Lat City. Lam Dong Provincial People's Committee determined that Delta Company had been granted an extension of land use in 2019 and 2021, but has not yet put the land into use.
Lam Dong Provincial People's Committee requests that, within 45 days from the date of receipt of the notice, Delta Company is responsible for organizing the handling of assets on the land. After the deadline, Lam Dong Provincial People's Committee shall issue a decision to reclaim the land according to regulations.
Delta Company was assigned land by the Provincial People's Committee in 2007 to invest in the construction of the Da Lat Plaza project. The project's construction items include internal traffic system, parking lot, water supply and drainage system, service building with architecture up to 14 floors. The total investment capital of the Da Lat Plaza project is about 267 billion VND.
Saigon Commercial Joint Stock Bank (SCB) said that the land use right certificate of the Da Lat Plaza project is the collateral for the loan of Oak Hill Investment Joint Stock Company at SCB. The principal debt of this loan as of April 30, 2024 is VND 734 billion.
Therefore, the decision by Lam Dong Provincial People's Committee to reclaim land and terminate the Da Lat Plaza project has caused the loan with the above outstanding debt to no longer have collateral, affecting SCB's ability to recover debt.
Lam Dong Provincial People's Committee has assigned the Department of Planning and Investment to preside over and compare legal regulations on investment for handling according to regulations.
