Nguyen Huu Khai, chairman of the Ho Chi Minh City-based herbal medicine maker Bao Long Company, will be kept in custody for 3 months for allegedly using sold properties.

The decision and arrest warrant were approved by Hanoi City People’s Procuracy, according to colonel Bach Dinh Thanh, deputy director of Hanoi Police Department cum chief investigator in the case.

Nguyen Huu Khai was arrested at Bao Long Company’s headquarters in Hoc Mon District on Saturday afternoon after being accused of illegally using the properties that have been sold to the Hanoi-based Bao Son Group. He has already been indicted.

Specifically, in 2011, Bao Son Group paid Bao Long VND227.5 billion ($10.9 million) to buy 100 percent stake in the latter.

The latter also transferred the right to use about 53,382 square meters of land and all the properties inside, including the trademarks and product copyrights of Bao Long Medical Group, Bao Long privately-owned Hospital, and Bao Long Martial Arts School.

The two parties reached the agreement to that effect on March 3, 2011.

However, Nguyen Huu Khai, representing Bao Long Co, has not fulfilled its obligations under the transfer contract between the two parties, and continued to make money from those sold properties.