The story related to Mr. Doan Hai Ha (Hanoi City) winning the auction to rent Thuy Ta restaurant (Ward 1, Da Lat City) at a "huge" price, nearly 5 times higher than the starting price, has caused a stir in public opinion in recent times and has not yet come to an end.
On December 1, Lam Dong Provincial People's Committee announced that it had agreed with the report and proposal of the Department of Finance regarding the cancellation of the decision to approve the auction results of Thuy Ta restaurant. At the same time, Lam Dong Provincial People's Committee assigned Da Lat City People's Committee to study the opinion of the Department of Finance to implement in accordance with the provisions of law.
Thuy Ta Restaurant on the floating island on the scenic Xuan Huong Lake
Previously, on November 23, the People's Committee of Da Lat City submitted a proposal to the People's Committee of Lam Dong province to consider canceling the auction results for renting Thuy Ta restaurant (Decision 2194/QD-UBND dated November 8, 2023 of the Provincial People's Committee) and continue to organize the second auction.
However, Lam Dong Department of Finance found that the legal basis for Da Lat City People's Committee to advise the Provincial People's Committee to issue a decision to cancel the auction results was not sufficient and clear.
According to the report of the Department of Finance, the application of Mr. Doan Hai Ha sent to the People's Committee of Da Lat City stated: "I hereby notify that I will not invest in Thuy Ta restaurant because I cannot change the name and must keep the name of Thuy Ta restaurant. To ensure the investment on November 3, 2023, I sent an application to the People's Committee of Da Lat City and the Auction Service Center to ask for opinions on the preliminary business plan and confirm the change of the name of Thuy Ta restaurant to HV restaurant in the business plan, but so far I have not received a response plan... Due to this inadequacy, I would like to inform you that I will not invest in Thuy Ta restaurant anymore. I respectfully ask you to consider the reality and give me further instructions".
Thuy Ta Restaurant has the most prime location in Da Lat City.
Lam Dong Department of Finance acknowledged that, according to the auction plan regulations approved by the People's Committee of Da Lat City and the Law on Property Auction in 2016, the auction result can only be canceled in the following cases: "After 90 days (from the date the Provincial People's Committee approved the auction result), the auction winner does not pay or does not pay the full amount of the auction. Or according to the agreement between the person with the auctioned property, the auction organization and the auction winner on the cancellation of the auction result. Compared with Mr. Doan Hai Ha's application, there is no request to cancel the auction result, but only the content of not investing and requesting to consider the reality and provide further instructions".
Therefore, the Department of Finance has proposed that the Lam Dong Provincial People's Committee direct the Da Lat City People's Committee to issue a specific written response to Mr. Doan Hai Ha's request so that Mr. Ha can know and implement it. In case Mr. Ha does not continue to implement the Decision approving the auction results, Mr. Ha must submit an agreement with the Da Lat City People's Committee to cancel the auction results according to Article 72 of the Law on Property Auction 2016 so that the Da Lat City People's Committee can submit it to the Provincial People's Committee to cancel the auction results. In case Mr. Doan Hai Ha does not submit an agreement to cancel the auction results, he will continue to monitor the implementation of the Decision approving the auction results (including late payment fines); after 90 days, submit it to the Provincial People's Committee to cancel the auction results.
Thuy Ta Restaurant is just a few hundred meters from Lam Vien Square.
As Thanh Nien reported, on October 30, Lam Dong Province Property Auction Service Center organized an auction to lease land and assets on land for Thuy Ta restaurant (10-year lease term, one-time payment) and Mr. Doan Hai Ha won with a "huge" price of 15.150 billion VND/year (starting price was only 3.040 billion VND/year).
Thuy Ta Restaurant has the most prime location in Da Lat City, located right on the floating island in the national scenic spot of Xuan Huong Lake. When renting, the tenant must almost keep the status quo (no expansion, no new construction, no additional construction, except in cases of local urban design adjustments), so many people think it is difficult to do business effectively here.
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