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Alibaba’s fake real estate projects mushroom in Southern provinces

Thứ Năm, 04/07/2019 - 19:00

As a newcomer in the real estate market, Alibaba Real Estate JCS (Alibaba) has quickly built its position by pushing advertisement for made-up urban projects in many Southeastern cities and provinces.

Chairman of Nhon Trach District People's Committee, Le Thanh My, confirmed that local authorties have not given permission to Alibaba to construct any residential projects, yet those made-up ventures are still being sold online, the latest being the Ali Aqua Nhon Trach project. In Long Thanh district, where Long Thanh airport is to be established, Alibaba is also selling multiple residential projects named with their own brand.

As of now, Alibaba is trying to sell 29 land projects, 27 of which are located in Long Thanh district. Upon discovering that the company was selling land lots in Xuan Loc commune, the district People's Committee had to force the dismantling of all enclosures and billboards around the area, while trying to make sure the same illegal tradings of land would not reoccur.

An aerial view of

An aerial view of "ghost project" Alibaba Tan Thanh residential area.

Dong Nai Department of Natural Resources and Environment confirmed that the 27 residential land projects being promoted in Long Thanh district used to be 19 agricultural zones that were transferred to new owners. Most of the land plots are registered under Mr. Nguyen Thai Linh, who is the owner of Alibaba company, or his relatives, and some of them now lie beneath unauthorized transportation roads.

The agricultural zones were divided into smaller land plots, which are then sold to oblivious investors with a red book (land use right certificate) registered in their names. Each of the plots are only 500 square meter in area and therefore do not violate the minimum land coverage specified by the authorities, which is partly how Alibaba has been getting away with their deceptions.

On the other hand, when investors pay 95% upfront, Alibaba will immediately close the deal and provide a red book. Even when the land plots’ ownership does not reach their buyers in time, Alibaba would compensate the buyers with interests. According to an officer from the Department of Internal Affairs of Dong Nai Provincial Party Committee, the reason Alibaba has not been prosecuted is because no victim has filed a complaint, nor have authorities been able to determine the damage caused by their fraudulence.

Along with its outrageously promoting hoax projects, the company has also been building unlicensed construction works on agricultural land and zoned areas such as residential houses, transaction offices, transportation roads, electricity, water and lighting infrastructures.

HCMC Real Estate Association said Alibaba has showed evidence of calling for multi-level capital investments. The association since 2017 has sent notices to Ho Chi Minh City People's Committee and Dong Nai and Ba Ria - Vung Tau provinces to warn against Alibaba taking advantage of legal loopholes to sell fabricated projects.

Department of Natural Resources and Environment of Dong Nai province has proposed the implementation of corrective measures according to the provisions in Article 72, Decree No. 43/2014/ND- CP dated May 15th, 2014 from the Government.

Meanwhile, Ba Ria-Vung Tau’s Department of Economic Police has completed verifying hoax projects by Alibaba company in the area. It is cooperating with 5 businesses in Ho Chi Minh City and Dong Nai, namely Alibaba Law Firm, Spartaland Real Estate Investment and Development JSC, Chien Thang Real Estate JSC, Alibaba Tan Thanh Co., Ltd, Chien Binh Thep Real Estate JSC, to transfer 7 land projects in Phu My town with a total of 3,333 lots, cashing in VND771 billion (about $33.1 million). 

These projects are all being sold lavishly without sufficient legal documents. Several land plot projects in Phu My have been recorded as administrative violations, but Alibaba still fails to observe regulations.

On June 25, Alibaba had tried to cover 3 illegally built asphalt roads in Chau Pha commune with dirt to try and mislead inspectors. Chairman of Phu My Town People's Committee Nguyen Van Tham told the outlet that the area was seized nonetheless despite their haphazard effort.

Toc Tien commune People's Committee said they are requesting the owners of 3 hoax project land in the commune to deal with any unwarranted constructions.

The chartered capital of Alibaba Company is said to have risen rapidly in the past three years, starting at VND1 billion (about $43,000) to an abrupt VND20 billion (about $860,000) within half a year, then to VND1.6 trillion ($69,000,000) in 2017, and finally VND5.600 ($241,000,000) trillion this year.

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