The Ministry of Natural Resources and Environment proposes to ban the auction for 5 years if the deposit is removed
The Ministry of Natural Resources and Environment (MONRE) proposes that in case an auction participant voluntarily gives up the deposit and refuses to participate in the auction, he cannot participate in the auction of the right to use the property for 5 years. soil.
The new proposal is made in the Draft amending and supplementing a number of articles of Decree 43/2014/ND-CP dated May 15, 2014 detailing the implementation of a number of articles of the 2013 Land Law.
According to the draft, organizations participating in the auction of land use rights must fully meet the following conditions: Belonging to the subjects of land allocation or land lease by the State according to the provisions of Articles 55 and 56 of the Land Law.
|The fact that Tan Hoang Minh Group won the auction to win a golden land lot in Thu Thiem for VND 24,500 billion and then put a deposit of VND 600 billion showed many legal loopholes.|
Having capital under his/her ownership for project implementation is not less than 20% of the total investment, for projects with a land use scale of less than 20 hectares; not less than 15% of the total investment for projects with a land use scale of 20 hectares or more; has experience in implementing investment projects using land.
Deposit in accordance with the law on investment.
Do not violate the provisions of the law on land in case they are using land allocated or leased by the State to implement other investment projects.
Must turn in down payment and have collateral for the auction organization to ensure the financial capacity to execute the project when winning the auction according to the approved plan.
The draft stipulates that individuals participating in the auction of land use rights must fully meet the conditions specified at Points 1 and 5 above. In case an individual participates in the auction of land use rights to implement an investment project, the conditions specified above must be satisfied.
The deposit amount is agreed upon by the auction organization and auction participants, but must be at least 20% of the starting price of the auctioned asset.
The deposit is deposited into a separate payment account of the auction organization opened at a commercial bank or foreign bank branch in Vietnam. In case the deposit is worth less than 5 million VND, auction participants can pay directly to the auction organization. Auction participants and auction organization may agree to replace the deposit with a bank guarantee.
|The Ministry of Natural Resources and Environment proposes that auction participants voluntarily give up the deposit and refuse to participate in the auction, they are not allowed to participate in the auction of land use rights for a period of 5 years.|
In case auction participants voluntarily give up the deposit and refuse to participate in the auction, they will have to compensate the State an additional amount equal to the value of the deposit. After auction participants pay enough compensation to the State, they will receive back the mortgaged property. In case auction participants do not pay compensation, it will be deducted from collateral.
“The value of the collateral must be greater than the starting price of the auctioned land plot. Auction participants and auction organizations can agree to replace the security assets and deposit with a bank guarantee.
Ban from participating in the auction for 5 years if you voluntarily drop the deposit
Notably, the draft stipulates that in case an auction participant arbitrarily cancels the auction winning result without a valid reason, in addition to the deposit, the auction participant must pay an amount equivalent to 50% of the auction price. value of land use rights won at auction and auction expenses to the auction organization’s separate payment account opened at a commercial bank or foreign bank branch in Vietnam.
In case an auction participant voluntarily drops the deposit and refuses to participate in the auction, he/she may not participate in the auction of land use rights for a period of 5 years.
After auction participants pay enough compensation to the state, they will receive back the mortgaged property. In case auction participants do not pay compensation, it will be deducted from the collateral.
According to the draft, auction participants may not receive their deposit back in the following cases: Having paid the deposit but not participating in the auction, the price announcement meeting but not falling under force majeure circumstances; being disqualified from participating in the auction due to violations of the law; refuse to sign the auction minutes as prescribed; withdraw the price paid or accepted; refuse auction winning results without good reason.
Draft regulations, participants Auction the land use right is provided with full information related to the auctioned land parcel; have the right to refuse to participate in the auction and receive a refund of the deposit in case there is a change in the starting price, location, area, and type of land listed or publicly announced; In case the deposit generates interest, the auction participants will receive such interest.
Implement the project according to the approved schedule in the land use right auction plan; If the auction winner does not put the land into use within 12 consecutive months or the land use progress is 24 months behind the schedule stated in the investment project from the date of receipt of land handover in the field, the State will recover land according to the provisions of the law on land and do not compensate…
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