Review and evaluate the feasibility of organizing enforcement of Gamuda Land

Waiting for instructions from the Ministry of Construction ?

Accordingly, regarding the Decision on administrative sanctions No. 1426/QD-XPHC dated April 13 of the Ho Chi Minh City People's Committee on Gamuda Land Joint Stock Company (HCMC) (Gamuda Land), the Department of Construction has submitted Document No. 10960 to the City People's Committee to propose issuing a Decision on compulsory enforcement of Gamuda Land's remedial measures.

After receiving the report, Vice Chairman of Ho Chi Minh City People's Committee Bui Xuan Cuong directed the Department of Construction to review and evaluate the feasibility of organizing the enforcement of remedial measures according to Decision 1426 of the Chairman of the City People's Committee and similar cases.

In particular, the Department of Construction must synthesize and report to the Ministry of Construction according to the opinion of the City People's Committee leader in Official Dispatch 7610/VP-DT dated July 24. Based on the guidance of the Ministry of Construction, synthesize the proposed report and submit it to the Chairman of the City People's Committee for consideration according to authority and law.

Construction number is assigned to evaluate the feasibility of organizing the Gamuda Land project, image 1 — The directive document of the City People's Committee assigned the Department of Construction to review and evaluate the feasibility of enforcing Gamuda Land to implement remedial measures.

As previously reported, in the administrative penalty decision 1426, Gamuda Land was pointed out to have signed a contract to buy and sell apartments at Apartment Building A5 of the Tan Thang Sports and Residential Complex project - Celadon City (Son Ky ward, Tan Phu district, Ho Chi Minh City) with customers 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.

Construction number is assigned to evaluate the feasibility of organizing Gamuda Land project image 2 — Diamond Alnata subdivision - Apartment complex A5 of Celadon City project.

If Gamuda Land Joint Stock Company fails to pay the fine within 10 days from the date of receipt of this decision, it will be subject to enforcement and for each day of delay in paying the fine, the violating organization must pay an additional 0.05% of the total unpaid fine. It is known that Gamuda Land has paid the administrative fine immediately after being sanctioned. However, the investor has not yet returned the improperly mobilized capital.

Gamuda Land continues to demand payment

It is worth mentioning that although the decision to punish Gamuda Land for "illegal capital mobilization" is still facing "problems" in the part of overcoming the consequences. However, according to many residents who have signed sales contracts with Gamuda Land in the Diamond Alnata subdivisions of the A5 Apartment Complex, the staff of this investor continues to send emails and text messages asking them to fulfill their financial obligations to receive their houses. If customers do not fulfill their financial obligations as signed, they may have to pay a late payment penalty.

This request for payment, house handover, and late payment penalty was made by Gamuda Land before June 29, the day the A5 Apartment Complex was accepted by the State Appraisal Department of Construction Quality. Even some apartments that were not on the list of eligible apartments for sale announced by the Department of Construction were also required to fulfill their financial obligations to receive the house.

Construction number is assigned to evaluate the feasibility of organizing Gamuda Land project image 3 — Gamuda Land staff sent emails to customers requesting payment, although the consequences of illegal capital mobilization have not yet been resolved.

Many customers at A5 Apartment Complex said they will continue to send petitions and evidence related to Gamuda Land's continued requests for payment and late payment penalty notices to the authorities. At the same time, they will continue to request that this investor must fulfill its commitments in the contract, related to penalties for late apartment handover as well as penalties for contract violations.

In addition, some customers at Apartment Complex A6 (Diamond Alnata Plus, Diamond Centery subdivision) are also sending petitions to the authorities to review violations related to this subdivision by the investor. Accordingly, Gamuda Land also signed apartment purchase contracts and apartment purchase agreements in phase 2020, when the project had not yet obtained a construction permit.

Gamuda Land is the real estate development division of Gamuda Berhad, Malaysia's leading infrastructure and construction group. Entering the Vietnamese market in 2007, Gamuda Land is currently investing in two urban areas: Gamuda City, covering 274 hectares in Hoang Mai District, Hanoi, and Celadon City, covering 82 hectares in Tan Phu District, Ho Chi Minh City.
Celadon City is a project built on an area of 82 hectares with a total investment of up to 1 billion USD. Currently, this urban area has been implementing many subdivisions including: Ruby, Emerald, Diamond Alnata, Diamond Alnata Plus, Diamond Brilliant, Diamond Centery, and The Glen (Condo Villa).
In addition, recently, the Elysian project at 170 Lo Lu Street (Truong Thanh, Thu Duc City, Ho Chi Minh City) was also promoted by Gamuda Land as the second project of this investor in Ho Chi Minh City. This is an apartment project deployed to anticipate the development of traffic infrastructure in this area with a scale of 3 hectares with nearly 1,400 apartments.

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