Was urged but not implemented
Accordingly, in Document 1323/UBND-TCD of Tan Phu District People's Committee, it is clearly stated that on May 4, the District People's Committee assigned Decision on administrative violation sanction No. 1426/QD-XPHC of Ho Chi Minh City People's Committee to Gamuda Land for this company to comply with.
As of May 8, Gamuda Land has paid a fine of VND900 million by transferring money to the State Treasury. However, the remedial measure stated in the Penalty Decision is “Forced to return the capital mobilized in violation of regulations”, but Gamuda Land has not yet implemented it.
On June 19, the Urban Order Management Team of Tan Phu District continued to urge Gamuda Land to comply with the penalty decision of the Ho Chi Minh City People's Committee. However, up to now, this investor has not yet implemented and complied with all the penalties of the city.
"Reminder" document from Tan Phu District People's Committee sent to Gamuda Land.
Thus, in this document, Tan Phu District People's Committee once again requests Gamuda Land to implement the above-mentioned remedial measures and report the implementation results to Tan Phu District People's Committee and Ho Chi Minh City.
As previously reported by Journalists and Public Opinion, on April 13, 2023, the People's Committee of Ho Chi Minh City issued a decision to fine Gamuda Land for violating the contract for the sale and purchase of apartments in apartment building A5, part of the Tan Thang - Celadon City sports complex and residential area project (on land plot No. 39, map sheet No. 40, in Ky Son ward, Tan Phu district) without a document from the Department of Construction notifying the eligibility to sell and lease 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.
Delay in paying benefits to customers according to contract terms
In addition to being fined for illegal capital mobilization, Gamuda Land is also involved in a conflict with customers at the A5 Apartment Complex. Specifically, this investor signed a sales contract with customers from mid-2019 until near the end of 2020, when there was no construction permit.
The house handover deadline stated in the contract is in the second quarter of 2022, along with the allowed delay of 90 days, Gamuda Land is responsible for handing over the house to the customer by the beginning of the fourth quarter of 2022. However, up to that time, Gamuda has not yet completed the project.
Even by early June 2023, the A5 Apartment Complex had not yet been approved for use by the authorities. Because Gamuda Land had issued a notice requiring residents to pay and receive their houses when they were not yet qualified for handover, the Ho Chi Minh City Department of Construction issued a document requesting the Tan Phu District People's Committee to prevent this investor from handing over houses to customers.
Because the handover was late compared to the time stated in the contract, some provisions related to late handover penalties and unilateral termination of the contract in the sales contract between Gamuda Land and the customer were sufficient to trigger.
Diamond Alnata - Celadon City area belongs to Apartment Complex A5.
Specifically, Article 11.7a stipulates "Penalty for late handover" that if the buyer has fulfilled the payment obligation as prescribed but the seller does not hand over the apartment to the buyer, the seller will have to pay interest at a rate of 18%/year, calculated on the total value of the payments the seller has actually received for each day of late handover. The time is calculated from the end date of the permitted late handover period, until the date of the handover notice when the apartment is eligible for handover as prescribed.
In addition, according to Article 11.7b of the contract, if the seller continues to not hand over the apartment from the date of the end of the permitted late handover period, the two parties can agree on another handover date, the seller will continue to bear the late handover interest during this period. In addition, there is another option clearly stated, that is, the buyer can unilaterally terminate the contract and Article 18.4 of the contract will be applied.
Many customers have expressed their frustration when the investor delayed fulfilling its obligations under the sales contract.
According to Article 18.4, Gamuda Land must refund the money received from the customer (without interest), pay the late delivery interest calculated on the total amount received, calculated from the time of termination of the permitted late delivery period until the effective date of the notice of contract termination. In addition, this investor must also pay a penalty equivalent to 30% of the purchase price for breach of contract and compensate for all actual damages incurred by the buyer due to the seller's breach of contract.
Although the terms are clearly stated in the contract, when the conditions for activation are met, the investor delays and does not pay benefits to customers. Instead, Gamuda Land has offered incentives for using services in the urban area and discounts for customers. However, these incentives have been rejected by many customers and there have been continuous meetings requiring the investor to perform as committed.
According to the information introduced on Gamuda Land's website, this is the real estate development division of Gamuda Berhad, Malaysia's leading construction and infrastructure development group. With more than 25 years of experience in urban and high-rise development, Gamuda Land has so far built 12 urban areas and 9 large-scale integrated high-rise projects in Malaysia, Singapore, Vietnam and Australia, with a total development value (GDV) of over 5.5 billion USD.
Entering the Vietnamese market in 2007, Gamuda Land is currently investing in two large 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.
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).
In addition, recently, the Elysian project at 170 Lo Lu Street (Truong Thanh, District 9, Thu Duc, Ho Chi Minh City) was also promoted by Gamuda Land as the second project of this investor in Ho Chi Minh City. This is an apartment project deployed to anticipate the development of traffic infrastructure in this area with a scale of 3 hectares with nearly 1,400 apartments.
Source
Comment (0)