Stubborn investor ignores fines over construction violations
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Stubborn investor ignores fines over construction violations

Economy, Vietnam, Vietnam Finance News

Authorities in HCM City has issued a fine of VND1bn (USD44,000) and ordered to halt the construction of the Holm Residence project for various violations to no avail.

  

TDS Company ordered to halt the construction of Holm Residence project

According to the authorities of Thao Dien Ward, District 2, in March, their officials and the district inspectorates had carried out an inspection at Holm Residence project and discovered several violations. The TDS Company increased the total area of their ground floor than the registered one by 1,127 square metres. They also built new construction that is not included in the registered planning.

The team made a record and asked the developer TDS Company to stop the illegal construction but the order was not obeyed. On April 11, the TDS Company was fined VND40m. The TDS continue to be fined VND1bn as it ignored the fine and resumed illegal constructions.

Le Van Khoa, vice chairman of HCM City People’s Committee, ordered to halt the project until the TDS Company fixes their violations.

However, Nguyen Ngoc Tuan, chairman of Thao Dien Ward, said the investor kept ignoring the order. The local authorities had to assign officials to guard the sites to prevent further construction activities.

As of now, the villas at Holm Residence project are still being offered to the market at the prices of VND45bn (USD1.9m) to VND100bn. Meanwhile, statistics from the Department of Natural Resources and Environment show that the project has been used as collateral for bank loans in 2015.

There are opinions that the fines are too small. Violations are detected at 11 out of 29 villas and if each villa has a price ranging from VND45bn to VND100bn, then the VND1bn is nothing.

Vo Van Hoan, head of the Office of the HCM City People’s Committee, said the fines were right and TDS Company must obey. “If the company fails to comply with the order, local authorities can carry out another inspection to discover new punishments,” he said.

QBCA

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