Police in Dong Nai Province, southern Vietnam on Monday said they had prosecuted a case in which 198 villas and 290 detached houses were built illegally in Trang Bom District.

Police officers made the move to investigate individuals and organizations involved in the development of the Tan Thinh Urban Area. They were charged with abusing positions and powers while on duty.

The People’s Committee of Dong Nai Province earlier issued results of a comprehensive inspection into the project, whose investor is LDG Investment JSC based in Trang Bom District.

The province introduced an 18.22-hectare land lot for the project in 2016 and gave its nod to LDG Investment JSC to develop the urban area in 2018 to meet local residents’ demand.

However, the company failed to complete procedures to lease the land and convert the land use purpose.

It has yet to get a construction license for the project either.

Nevertheless, it constructed roads, a green park, rainwater and wastewater drainage systems, and power and water supply systems between 2018 and 2020.

The investor also completed the building of 198 villas and 290 detached houses. Moreover, the remaining 192 detached houses are under construction.

At the inspection time, LDG Investment JSC had signed sales contracts worth over VND132 billion (US$5.6 million) with 60 customers.

These customers have paid the company 25-95 percent of the contract values. Seven households have been living in houses at the project.

Inspectors found that the provincial land registration office had issued five certificates of land use rights to hand over more than 16 hectares of land, including over 12.8 hectares of rice fields, to LDG Investment JSC without the approval of the agencies in charge of the job.

The act showed signs of infringing land management regulations with the main responsibility falling on the Dong Nai land registration office, leaders of the office at the time, and over 20 relevant individuals and 13 organizations.

In particular, Hoang Van Dung, former director of the Dong Nai land registration office, who signed the five certificates of land use rights, may face criminal charges.

The chairman of the provincial People’s Committee has also required clarification of the responsibility of individuals and organizations involved in the case.

LDG Investment JSC was fined and asked to submit its illegal income from the project, totaling over VND6.3 billion ($269,390) in late 2020 for illegally using the land while failing to complete land lease procedures.

Inspectors from the provincial Department of Construction in 2020 also fined the company VND75 million ($3,207) for developing the project while failing to meet commencement requirements in line with the law.

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