Gamuda Land challenges the law by continuing to illegally raise capital?

Continued violations of capital mobilization

Accordingly, on May 8, 2023, the Department of Construction issued Document 6351/SXD-PTN&TTBDS to Gamuda Land Joint Stock Company (Gamuda Land) regarding the sale of future housing with 160 apartments of Apartment Complex A5, 1,153 apartments of Apartment Complex A6 at Tan Thang Sports and Residential Complex project (Celadon City - Son Ky ward, Tan Phu district).

In this document, the Department of Construction stated that the above apartments are in compliance with the regulations on the conditions of future real estate to be put into business. Thus, the apartments not included in the list attached to this document are still not eligible to open for sale for future housing.

Although there was a clear list, through the investigation of the Journalists and Public Opinion newspaper, after the Department of Construction issued Official Letter 6351, the investor Gamuda Land still sent payment requests to customers who were not on the list of 160 apartments eligible for sale at Apartment Complex A5.

For example, in early June 2023, Gamuda Land staff still sent an email asking Mr. HN's family - a customer who bought an apartment in Tower A2 (not on the list of eligible sales) to complete their financial obligations to receive the house. If he does not complete the procedures for the bank to disburse the loan before June 12, Mr. HN will be fined interest on the amount of late payment.

Continue to collect money and hand over apartments not on the list of Gamuda Land for sale, challenging the law. — Gamuda staff urged customers at apartments not on the list for sale to complete bank documents for payment disbursement, otherwise they will be fined for late payment.

“In addition, Gamuda Land also collected over 120 million VND from the previous owner for late payment. Later, after discussions, the investor reduced the fine to over 57 million VND. Meanwhile, Gamuda Land has not implemented the rights and obligations to customers such as late apartment handover, even though I have gone to the site many times to negotiate with the investor,” Mr. HN was upset.

It is worth mentioning that at the time Gamuda Land asked Mr. HN to fulfill his financial obligations and pay the fine to receive the house, the A5 Apartment Complex had not yet been accepted by the State Appraisal Department for Construction Quality to put the project into use.

Is Gamuda Land challenging the law?

Previously, on April 13, 2023, Vice Chairman of Ho Chi Minh City People's Committee Bui Xuan Cuong signed Decision No. 1426/QD-XPHC to impose a penalty on Gamuda Land. Accordingly, this company violated the law when signing a contract to buy and sell apartments at apartment complex A5 without a document from the City Department of Construction notifying that it is eligible to sell and lease future housing according to the law.

Pursuant to Clause 4, Article 58 of Decree 16/2022/ND-CP dated January 28, 2022 of the Government , the People's Committee of Ho Chi Minh City decided to fine Gamuda Land VND 900 million for illegal capital mobilization.

At the same time, Gamuda Land Joint Stock Company must take remedial measures to return the capital mobilized in violation of regulations. The time limit for implementing remedial measures is 10 days from the date of receipt of the decision. All costs for organizing the implementation of remedial measures shall be borne by the company.

Although the ink has not yet dried on the penalty of the Ho Chi Minh City People's Committee, the request to remedy the consequences in this penalty decision has not yet been implemented by Gamuda Land, this investor has requested customers in apartments not on the list for sale to continue paying. Is it possible that the penalty of the Ho Chi Minh City People's Committee is not enough to deter Gamuda Land, causing this investor to continue to commit illegal acts once again?

In addition, Gamuda Land's behavior also makes many people question the responsibility of inspection and supervision of the authorities. Official dispatch 6351/SXD-PTN&TTBDS of the Department of Construction was also sent and kept at the Inspectorate of the Department of Construction of Ho Chi Minh City and the People's Committee of Tan Phu District so that these units are responsible for coordinating the inspection of the sale of future housing of Gamuda Land at Celadon City. Up to now, have these agencies grasped the above information or not and how will Gamuda Land's behavior be handled? The Journalists and Public Opinion Newspaper will continue to work with the authorities to clarify this issue.

From a legal perspective, according to lawyer Diep Nang Binh - Head of Tinh Thong Luat Law Office (Ho Chi Minh City Bar Association), regulations on illegal buying and selling, capital mobilization, and appropriation of home buyers' capital... are clearly stipulated in the 2014 Law on Real Estate Business. However, for some large enterprises, the fine of 1 billion VND for the act of mobilizing and buying and selling without meeting the conditions is too small compared to the amount of money the enterprise earns from illegal mobilization activities. This leads to the phenomenon of being indifferent to the law, knowing that it is against the law but still deliberately violating it.
“To tighten the phenomenon of illegal capital mobilization, selling houses when not qualified, delaying the delivery of houses according to the contract… there needs to be a policy to score the capacity, reputation and contribution of investors to society. This will serve as a basis for selecting investors for new real estate projects,” said lawyer Binh.
Therefore, there needs to be a mechanism to ban investors with weak capacity who deliberately violate local laws, causing risks to home buyers, the risk of budget loss, and protecting a healthy real estate market to include in the law. In addition, it is necessary to clarify the responsibility of local authorities for lack of management and supervision, leading to the phenomenon of businesses committing illegal acts, affecting the legitimate rights of home buyers.

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