Usilk City investor does not guarantee financial capacity
On April 20, the Government Inspectorate issued Notice No. 1105/TB-TTCP, Notice of Inspection Conclusion on compliance with legal regulations in land management and use and construction planning, construction permits in Hanoi city.
Notably, at the Van Khe Expanded Urban Area Project (Usilk City): The project was assigned by Ha Tay Provincial People's Committee to Song Da Thang Long Joint Stock Company as the investor when it did not ensure financial capacity according to regulations; on the other hand, the investor signed contracts for transfer, sale of houses, borrowing capital, issuing bonds... collecting a total amount of 8,456 billion VND but used 5, 302 billion VND for other projects and purposes, leading to a project shortage of investment capital, slow construction progress, and the failure to hand over over over 750 apartments to customers, leading to lawsuits and land waste; it is necessary to transfer it to the investigating agency for further consideration and handling.
From there, the Government Inspectorate transferred the case file related to the Van Khe Expanded Urban Area Project (Usilk City) invested by Song Da Thang Long Joint Stock Company to the Ministry of Public Security for consideration, investigation and handling according to the provisions of law.
Shortcomings and violations in a series of projects
The Government Inspectorate also pointed out that through inspection of some contents at 23 urban area and housing projects according to the approved inspection plan, there are still some limitations, shortcomings, and violations as follows:
Omissions and violations in construction planning and land use planning such as: partial adjustment of detailed planning not ensuring grounds and conditions; time of approval of investment policy, project not included in housing development plan; issuance of planning permits not in accordance with zoning planning; approval of master plan drawings and architectural plans not in accordance with planning, determination of public floor area not ensuring minimum area; allocation of land for project implementation not in accordance with planning and land use plan, then adjustment and update: there are 09/23 projects.
Omissions and violations in the selection of investors to implement housing projects without bidding to select investors, without auctioning land use rights, and decisions on investment policies not within their authority.
Omissions and violations in land recovery, land allocation, land lease, issuance of land use right certificates: failure to sign land lease contracts, approve land lease unit prices; failure to sign contract appendices to re-determine land lease unit prices after the unit price stabilization cycle; inaccurate determination of land use structure; deviation of area in land allocation decisions with detailed planning, investment certificates, failure to issue certificates of land use rights, house ownership and other assets attached to land to investors and households, individuals receiving transfer, handing over landmarks on the ground when the project has completed construction investment... there are 08/23 projects.
Omissions and violations in the issuance of construction permits and construction order management for 12/23 projects, such as: issuing construction permits not ensuring according to planning; Investors constructing but without permits or constructing not in accordance with planning (cases of exemption from construction permits), constructing to increase the number of apartments at the project without being approved by competent authorities to adjust the design; using the function of some items of the project incorrectly, handing over and allowing people to live in apartments when the housing project has not been accepted for use, has not been accepted for fire prevention and fighting.
