Among the four auction winners, two have canceled the contract. The HCMC Department of Natural Resources and Environment has sent a written notice to request the other two to fulfill their finance obligations.
Accordingly, Dream Republic JSC., the winner of land lot No.3-5 with a surface area of 6,446m2, needs to pay VND3,820 billion (US$167 million). Sheen Mega JSC., the winner of land lot No.3-8 with a surface area of 8,568m2, has to pay VND4,000 billion ($174.9 million).
Both must also pay a registration fee and late payment fine of over tens of billions of VND.
After April 6 (90 days from the formal written notice above), these winners are considered contract violators if they do not pay the money. Then the HCMC Property Auction Service Center will issue an official notice on this violation so that the Land Fund Development Center has a proof to report to the HCMC Department of Natural Resources and Environment, and then to HCMC People’s Committee, followed by a cancelation of the decision to recognize auction winning results.
This will result in a deposit loss of 20 percent of the land use price to the mentioned violators.
The two winners who canceled the contract are Viet Star Real Estate Investment Co. Ltd. (winner of land lot No. 3-12, covering an area of 10,059m² with a price 8 times as high as the initial one), and Binh Minh Trading Business and Investment Co. Ltd. (winner of land lot No.3-9, covering an area of 5,009m²). They both agreed to give up their deposit sums of 20 percent of the initial prices (at VND588 billion - $25.7 million and VND728 billion - $31.8 million).
