The Ministry of Public Security and HCMC’s Police Department arrested and began legal proceedings against Nguyen Thai Luyen, Chairman of the Board and CEO of Alibaba Real Estate JSC and his younger brother Nguyen Thai Linh, the company’s Director.
The two were remanded in custody for four months to investigate allegations of fraudulent appropriation of real estate.
Alibaba Real Estate JSC was recently accused of fraudulently selling houses and land plots in unreal projects in HCMC and Ba Ria–Vung Tau province, appropriating thousands of billions of dong.
The Ministry of Public Security said Alibaba’s violations of the law on planning, management and usage of land as well as fraudulently selling unreal projects are reportedly taking place in many localities, raising public concerns.
"Investigation agencies are gathering forces to clarify Linh’s violcations, expand investigations to related subjects and recover people’ assests," said a representative of HCMC’s Police Department.
Alibaba Real Estate JSC has been headquartered in Thu Duc District since June 2017. Hiep Binh Chanh Ward People's Committee sent 3 dispatches to the Thu Duc District People's Committee asking for support the inspection and supervision of this company's operations because there were signs of “a threat to public security”.
In Ba Ria - Vung Tau, a series of agricultural land plots have been divided into smaller lots for sale under the so-called "Alibaba residential area". Thousands of plots have been distributed by Alibaba, collecting hundreds of billions of dong. Previously, two projects of this company were coerced by authorities of Phu My Town, but enforcement forces faced with fierce response from dozens of Alibaba’s employees. In particular, a female employee named Huynh Tu Trinh repeatedly incited others to beat cars of the enforcement forces. Trinh and two other employees were arrested for intentionally damaging property and causing public disorder.
While the Nguyen brothers were arrested and two headquarters of Alibaba Real Estate JSC were raided, on the company’s website tapdoandiaocalibaba.com, there were many headlines still presenting unreal projects, with a commitment to "help customers become rich with real estate”, “gaining profit of at least 28 percent per year”, and “no customer has lost money when investing in Alibaba real estate project”, etc.
