On June 1, 2023, the Ho Chi Minh City Department of Construction sent a document to the People's Committee of Tan Phu District to prevent the handover of apartments to residents for use without organizing acceptance according to regulations at Apartment Complex A5 (belonging to the Tan Thang Sports and Residential Complex Project - Celadon City, Son Ky Ward, Tan Phu District).
The Department of Construction also submitted a petition to the Ho Chi Minh City People's Committee to sign and issue a "Decision on administrative sanctions for violations in real estate business activities against Gamuda Land Joint Stock Company (Gamuda Land)". The reason for the sanction is because this investor handed over houses and construction works to customers without having a document approving the acceptance results from the competent authority to put the housing project and social infrastructure project into use according to regulations.
Specifically, Gamuda Land handed over apartments at Apartment Building A5 (belonging to Tan Thang Sports and Residential Complex Project - Celadon City, Son Ky Ward, Tan Phu District, Ho Chi Minh City) to customers without receiving a written approval from the State Appraisal Department for Construction Quality of the results of the inspection of the completion of the project to put it into use according to regulations.
Diamond Alnata subdivision belongs to Gamuda Land's A5 Apartment Complex.
Regarding Gamuda Land's behavior, speaking with the Journalist and Public Opinion newspaper, Lawyer Nguyen Van Tuan - Director, TGS Law Firm LLC (Hanoi Bar Association) commented that the penalties for violations of this investor are stipulated in Article 18 of Decree 16/2022/ND-CP, which stipulates penalties for violations of regulations on acceptance of construction works:
Specifically, a fine of 20 million to 40 million VND will be imposed for one of the following acts: Acceptance not in accordance with prescribed procedures; Failure to send a document to the construction professional agency requesting inspection of acceptance work as prescribed.
A fine of 80 million to 100 million VND shall be imposed for the act of putting a construction part, construction item, or construction work into use without organizing acceptance as prescribed.
A fine of 100 million to 120 million VND shall be imposed for one of the following acts: Acceptance of work when the volume of work has not been performed or the accepted volume is larger than the actual volume performed for works using public investment capital, foreign capital for public investment, and PPP projects; Works that have been accepted but do not ensure the quality of the works.
Lawyer Nguyen Van Tuan - Director, TGS Law Firm LLC (Hanoi Bar Association)
In addition, the violating investor must also take remedial measures including:
Within 10 days from the date of issuance of the decision on administrative sanction, the investor must have a written request for the competent authority to inspect the acceptance work according to regulations for the acts specified in Point b, Clause 1 of this Article;
Within 1 to 3 months, the investor must organize the acceptance of the construction parts and construction items put into use for the acts specified in Clause 2 of this Article;
Force the organization to re-accept the actual construction and force the recovery of the amount of money that has been accepted and paid incorrectly to the investor's account for the acts specified in Point a, Clause 3 of this Article;
Forced to correct construction quality according to regulations for the acts specified in Point b, Clause 3 of this Article.
“Thus, when an organization puts a construction project into use without accepting the project, the organization will be fined from 80 million to 100 million VND. In addition, it is also required to organize acceptance of the construction project parts that have been put into use within 1 to 3 months,” lawyer Nguyen Van Tuan commented on Gamuda Land's violation.
As previously reported, the investor Gamuda Land was administratively sanctioned by the Ho Chi Minh City People's Committee on April 13 for signing a contract to buy and sell apartments at Apartment Complex A5 without a document from the Department of Construction notifying that it meets the conditions for selling and leasing future housing according to the law.
Pursuant to Clause 4, Article 58 of Decree 16/2022 of the Government, the Ho Chi Minh City People's Committee has decided to fine Gamuda Land VND 900 million for illegal capital mobilization. The company must also take remedial measures to return the capital mobilized illegally. 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.
However, up to now, Gamuda Land has not yet taken remedial measures as stated in the penalty decision.
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 with a scale of 274 hectares in Hoang Mai district, Hanoi and Celadon City with an area of 82 hectares in Tan Phu district, Ho Chi Minh City and a number of other projects.
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).
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