Unprocessed violations
On May 8, 2023, the Ho Chi Minh City Department of Construction agreed to allow Gamuda Land Joint Stock Company (Gamuda Land) to open the sale of future housing for 160 apartments in Apartment Complex A5 and 1,153 apartments in Apartment Complex A6 in the Tan Thang Sports and Residential Complex project (commercial name Celadon City, Son Ky ward, Tan Phu district) in document 6351/SXD-PTN&TTBDS.
However, through research in this document of the Department of Construction, much information shows that in addition to the violations that have been punished by Gamuda Land, there are still other issues that have not been pointed out.
Specifically, according to legal documents provided by Gamuda Land to the Department of Construction, including minutes GLHCM/A5.1/RICONS/HTGD/PHANNGAM/001 dated November 29, 2019 and A5.2.EPSW/FCS/CSI/POC/001 dated April 29, 2021 on acceptance of completion of underground structure items of A5 Apartment Complex.
Diamond Alnata apartment complex in Celadon City project is experiencing many conflicts between customers and investors.
Meanwhile, the A5 Apartment Complex was granted license No. 68/GPXD by the Department of Construction to allow this investor to construct the project on May 28, 2021. Thus, the underground part of the A5 Apartment Complex was completed by Gamuda Land and had an acceptance report before obtaining a construction permit.
Looking at the case from a legal perspective, lawyer Nguyen Van Tuan - Director of TGS Law Company Limited (Hanoi Bar Association) said that according to the provisions of Clause 39, Article 1 of the 2020 amended Construction Law, Amendment and supplement of Clause 1, Article 107 stipulates that the commencement of construction work must ensure the following conditions:
Have a construction site to hand over in whole or in part according to construction progress; Have a construction permit for works requiring a construction permit as prescribed in Article 89 of this Law; Have an approved construction drawing design of the construction item or work to be started;
The investor has signed a contract with the contractor to carry out construction activities related to the project to be started according to the provisions of law; There are measures to ensure safety and protect the environment during the construction process; The investor has sent a notice of the construction commencement date to the local state management agency for construction at least 3 working days before the construction commencement date.
In addition, if the project is subject to a construction permit, it is necessary to apply for a construction permit before construction can begin, including the foundation.
How will Gamuda Land be punished?
Regarding the penalty for investors who construct without a construction permit, lawyer Nguyen Van Tuan said that the penalty for this act is stipulated in Articles 14 and 15 of Decree 139/2017/ND-CP.
According to Clause 4, Article 14 on violations of regulations on construction commencement, it is clearly stated that in case of construction commencement without a construction permit as prescribed, the penalty shall be imposed according to the provisions of Clause 5, Article 15 of this Decree. The fine for the act of organizing construction without a construction permit which is required by regulations is as follows:
Fines from 10 to 20 million VND for constructing individual houses in conservation areas, historical - cultural relic areas or constructing other works not falling under the cases specified in Point b, Point c of this Clause; Fines from 20 to 30 million VND for constructing individual houses in urban areas; Fines from 30 to 50 million VND for constructing works requiring the preparation of an economic - technical report on construction investment or the preparation of a construction investment project.
Lawyer Nguyen Van Tuan - Director of TGS Law Firm LLC
“In addition to the fine, construction may also be suspended for 60 days from the date of the record to carry out the procedures for requesting a construction permit. If the 60-day period is exceeded and the construction permit is not presented, the measure of forced demolition will be applied,” said lawyer Nguyen Van Tuan.
Also related to Apartment Building A5 of the Tan Thang Sports and Residential Complex project, previously on April 13, Gamuda Land was fined for signing an apartment sale and purchase contract without a document from the Department of Construction notifying that it is eligible to sell or lease future housing according to legal regulations.
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.
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