Sued company develops project without full land use rights

Without obtaining a land use right certificate for a part of its Royal apartment project in Ho Chi Minh City, Tan Hoang Than Co. Ltd completed six floors of the building’s construction before being suspended.  The company was recently sued by its customers for failure to deliver apartments as promised.

Without obtaining a land use right certificate for a part of its Royal apartment project in Ho Chi Minh City, Tan Hoang Than Co. Ltd completed six floors of the building’s construction before being suspended.  The company was recently sued by its customers for failure to deliver apartments as promised.

The HCMC Construction Department said it had required the company to proceed with procedures to obtain a certificate, but the company has yet to fulfill protocol. 

People who have paid deposits for purchasing deluxe apartments from the Royal project prepare complaints against the investor, Tan Hoang Than Co., Ltd. (Photo: VietnamPlus)
People who have paid deposits for purchasing deluxe apartments from the Royal project prepare complaints against the investor, Tan Hoang Than Co., Ltd. (Photo: VietnamPlus)

This information was released after more than 20 customers sought assistance from lawyers on June 9 to take a legal action against Tan Hoang Than for not handing over apartments to them on schedule and refusing to repay their deposits.

One day later, June 10, the company claimed it had paid deposits back to six of 23 clients.

The Royal project, located on Dinh Bo Linh Street, Ward 23, Binh Thanh District, was suspended three years ago after it caused subsidence cracks to some of the surrounding houses.

Under the approved design, 50 percent of the project’s apartments would go on the market for sale, leaving the remaining properties available for lease. However, it has actually signed up to sell over the allowable rate and failed to satisfy their contractual obligation to deliver the apartments as scheduled.

Tan Hoang Than has systemically violated regulations on construction investment, with all eight of its projects infringing regulations, according to the Construction Department.

The department said it had referred the company’s violations to the city’s investigation police for criminal prosecution.

The department also required the company to rapidly ameliorate all damages its project has caused.

The company must provide a clear explanation to its customers who have paid deposits and must resolve all their legitimate complaints in accordance with relevant regulations, the department said.

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