Prosecution of the case of 'Fraudulent appropriation of property' at Minh Khang Company

Information on the prosecution of a criminal case for the crime of "Fraudulent appropriation of property" at LLC - TMMinh Khangprovided by the Provincial People's Procuracy.

Accordingly, on August 15, 2021, the Provincial Police Investigation Agency issued Decision No. 110/VPĐTCAT to prosecute a criminal case on the crime of "Fraudulent appropriation of property" at the project to build a complex of hotels, supermarkets trading in pharmaceuticals - medical equipment and housing in Nghi Phu commune (Vinh city) invested by Minh Khang Trading Co., Ltd.

The real estate trading floor at the project of hotel complex, supermarket trading in pharmaceuticals, medical equipment and housing has been inactive for quite a while. Photo: Nhat Lan

Regarding the project to build a complex of hotels, supermarkets, pharmaceuticals - medical equipment and housing in Nghi Phu commune (Vinh city), the detailed planning was approved in Decision 521/QD-UBND.DT in 2007, with a total area of ​​7.86 hectares; the west of the project borders Xo Viet Nghe Tinh street, the north borders a 72m wide planned road, the south borders a 30m wide planned road, the east borders Truong Van Linh street. Of which, the construction area is 1.77 hectares (construction density is only about 27%).

The project description clearly states that on this 7.86-hectare land with many advantages, the investor will build a pharmacy supermarket - medical equipment and office for rent along Xo Viet Nghe Tinh street; a 4-storey medical examination and treatment service area along the 30m planning road; a sports and fitness playground and green trees arranged in the center of the planning area with an area of ​​over 10,000 m2.²to beautify the landscape, create a good environment; in addition, there are 5-storey social housing, townhouses, villas, garden houses...

Therefore, the project to build a complex of hotels, supermarkets trading pharmaceuticals - medical equipment and housing in Nghi Phu commune (Vinh city) is expected to be a complex urban area creating a highlight in the North of Vinh city.

With the current reality, can the project invested by Minh Khang Trading Co., Ltd. still be considered a "highlight of the North of Vinh City"? Photo: Nhat Lan

However, up to now, this project has no outstanding construction works; technical infrastructure is not built synchronously; there are no public works and social welfare works... Looking at the whole picture, the project has become a chaotic residential area.

As reported by Nghe An Newspaper, at the project of hotel complex, supermarket trading in pharmaceuticals, medical equipment and housing byMinh Khang Trading Co., Ltd.As an investor in recent years, there have been a series of complaints and denunciations. From the handling of complaints and denunciations from citizens, Nghe An Newspaper has published a number of articles about the violations that occurred in this project.

A copy of the "Capital contribution principle contract" in the project invested by Minh Khang Trading Co., Ltd. Photo: Nhat Lan

In those articles, Nghe An Newspaper also pointed out signs that Minh Khang Trading Co., Ltd. had fraudulent behavior toward customers. That is, Minh Khang Trading Co., Ltd. had mobilized capital from customers in the form of "capital contribution principle contract" with a very large amount of money, up to hundreds of billions of VND.

However, Minh Khang Trading and Service Co., Ltd. has not fully invested in synchronous technical infrastructure according to the approved design (only about 70% has been completed); nor has it invested in the construction of other public works and social welfare works such as trees, kindergartens, cultural houses, etc.

Meanwhile, Minh Khang Trading Co., Ltd. has assigned land to customers to build their own houses without meeting the prescribed conditions. That is, it did not sign a contract for the sale of houses and transfer of land use rights; some land lots have not been allocated by the State; land use fees have not been paid to the State; land use rights certificates have not been granted... There are even some cases where customers with "principle capital contribution contracts" were assigned land by Minh Khang Trading Co., Ltd., but according to the detailed construction plan, it is land for green trees, land for production, business, and traffic land.

Regarding the land use debt situation, on September 7, Nghe An Electronic Newspaper also reported in the article "Overdue tax debt, Minh Khang Trading Company Limited was charged over 69 billion VND in late payment fees").

Cover of an article in Nghe An Newspaper related to violations at the project invested by Minh Khang Trading Co., Ltd. Photo: Nhat Lan

Accordingly, since 2018, Minh Khang Trading Co., Ltd. has begun to form a debt for land use fees to the State budget. This is the time when the Provincial People's Committee issued a decision approving the average land price of the land area where Minh Khang Trading Co., Ltd. implemented the project of hotel complex, supermarket for pharmaceutical business, medical equipment and housing in Nghi Phu commune, Vinh city, with the area subject to land use fees of 16,554.1 m2. On May 30, 2018, the tax authority notified Minh Khang Trading Co., Ltd. that the total land use fees payable to the State budget was VND 210,803,962,000.

However, after more than 3 years, Minh Khang Trading Co., Ltd. still has not paid taxes according to the provisions of law. As a result, the total amount of tax that Minh Khang Trading Co., Ltd. has not paid to the State budget as of August 2021 is up to 281,520,801,745 VND. Of which, land use fee is 210,803,962,000 VND; non-agricultural land use tax is 1,423,682,262 VND; late payment fee is 69,293,175,483 VND.