Many delegates said that strong sanctions are needed to prevent devaluation for group interests, personal interests, manipulation, disruption, collusion and price suppression.
Sanctions are needed for violations in determining starting prices.
According to delegate Nguyen Duy Thanh (Ca Mau delegation), it is necessary to supplement regulations on rights, responsibilities and sanctions for violations in determining starting prices in close relationship with other legal regulations on price management, land management, public asset management...
The delegate said that although the form of direct auction by word of mouth is stipulated in the current law, in reality it is less used than other forms. To ensure publicity and transparency, only two forms should be maintained: verbal auction and direct auction. At the same time, it is necessary to clearly define the authority and responsibility of the parties involved, protect the legitimate rights of auction participants, people with auctioned assets, and auction organizers.
“In addition, it is necessary to amend and supplement regulations to limit the situation of deposit abandonment, prevent price dumping for group interests, personal interests, manipulation, and disruption,” the delegate emphasized.
Delegate Tran Van Khai (Ha Nam Delegation) agreed with the amendment and supplement to the Law on Property Auction this time. The delegate said that the situation of auction participants not having sufficient financial capacity is common.
In the current Law on Property Auction, Clause 5, Article 9 on prohibited acts for property auction participants does not have provisions to determine the financial resources of auction participants. This leads to the situation of taking advantage of auctions to disrupt the land market or "auctioning on behalf of others"... Many cases "rely entirely" on the bank guarantee. Or in cases of deposit cancellation, it is not easy to collect the deposit; or after winning the auction, the project implementation is delayed...
“In the recent practice of land use rights auctions, the most difficult problem at present is also the biggest legal loophole in determining the financial capacity of auction participants,” the delegate said.
Review the regulations on the time of deposit
Delegate Ho Thi Kim Ngan (Bac Kan Delegation) expressed her opinion on the auction of land use rights in the case of land allocation or lease to implement investment projects and mineral exploitation. The person who meets the requirements and conditions for participation (in Clause 2a, Article 38 of the draft) must pay a deposit to the auction organization at least 1 working day before the auction opening date.
According to the delegate, from the deadline for submitting auction documents (15 days before the auction date) to the deadline for depositing the deposit (1 day before the auction date) is a relatively long period of time. This regulation can lead to auction participants colluding and agreeing with each other: When submitting documents, there may be many people "creating a virtual market fever". However, when depositing the deposit, only one or a few people pay. This will cause difficulties for the auction organization as well as the unit owning the property.
To limit collusion and “fake documents”, delegate Ho Thi Kim Ngan suggested that the study should not divide the cases into too many categories as in the draft, but instead stipulate that: In all auction cases, regardless of the type of property, when submitting documents, a deposit must be paid; in cases where the appraisal and approval do not meet the requirements, the deposit will be returned. The deadline for submitting documents and deposits must be within a reasonable time frame and agreed upon.
At the discussion session, Minister of Justice Le Thanh Long reported, received and explained issues of concern to delegates. The Minister also explained some specific contents on procedures to limit collusion, price gouging, and blue and red teams.
The Minister said that the Auction Law is a formal law, while regulations on starting price or handling must comply with specialized laws.
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