Selling illegal housing at New City project, Thuan Viet was fined by Construction Department

On May 7, Construction Department in HCM City has decided to sanction administrative violations of Thuan Viet Trading Construction Company Limited (Thuan Viet Company), investor of New City project in Thu Thiem urban area, District 2, Ho Chi Minh City.

Thuan Viet was inspected by the Department of Construction of Ho Chi Minh City. HCM fined over VND100 million for a series of violations such as real estate business is not eligible, not allowed to put into business according to regulations; Failing to report to the state management agency in charge of construction for inspection according to regulations, for works subject to inspection by the state management agencies in charge of construction before putting them into use; Evaluation and approval of designs and cost estimates for construction of works in contravention of the order and procedures prescribed.

The Inspectorate of the Construction Department asked Mr. Vo Van Be to be the legal representative of the Company to execute the sanctioning decision.

Thuan Viet was fined by Construction Department

The New City project is included in the resettlement program of 12,500 units of Thu Thiem new urban area. This project has so far no official decision of the city to move from the resettlement to commercial house but investor Thuan Viet has sold nearly 1,300 households with the price up to VND 70 million / sqm.

Customers buy apartments here, when signing agreements will deposit immediately VND100 million. 7 days later, customers pay 10% (excluding VAT); One month later, pay 20%. When the investor sends a notice to sign a contract of purchase is the customer paid 30%. When signing a purchase contract, customers will pay the next 65% to receive a home.

However, many customers say they have closed 95% but have not received home yet. Another downside to this project is that even the land use fees for the project have not been decided by the state. Leaders of Construction Department confirmed the New City project has not completed the land use fee, that is, investors do not have enough legal documents of the project.

According to information from the Department of Natural Resources and Environment City. So far, the land use fee for the New City project has not reached Natural Resources and Environment Department. Thus, the New City project will be very difficult when the investor has not paid the land use fee, sold the apartment and collected in advance a land use fee from the customer.

One issue that is causing confusion for the public today is that this project is in the program of 12,500 apartments resettled Thu Thiem, located on public land but not auctioned that the city delivered to the business. Meanwhile, a lot of land, other apartments do not use the city are auctioned to recover capital.

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