The provincial Department of Construction has issued Document No.3564 to Cat Tiger Khareal real estate company, which is developer of the 40-storey Napoleon Castle apartment complex in Nha Trang city, asking the project owner to ensure the contracts’ termination and liquidation, reported news site VietnamPlus.
The sale of the 20 apartments to foreigners has violated regulations under Articles 75 and 76 of the Government Decree 99, dated October 20, 2015, said the department.
The department said that the developer had not obtained the local government’s permission to allow foreign ownership in the project.
Cat Tiger Khareal has been told to report cancellation of the contracts to the department in November. The department added that it would consult relevant agencies to assess if the project is part of a "national security area" where foreign ownership is banned.
According to Tran Nam Binh, deputy director of the construction department, the department will team up with the provincial police and the Military Command to take further steps in line with prevailing regulations, right after Cat Tiger Khareal completes the contracts’ termination and liquidation.
The residential project Napoleon Castle 1 is located on Nguyen Dinh Chieu Street, Vinh Phuoc Ward, in the provincial city of Nha Trang, 550 meters away from the Nha Trang coastline. Covering an area of 3,000 square meters, it comprises 40 stories and three basements, with 824 apartments.
Even though the project is still undergoing construction and mandatory inspections are pending, its developer has handed over 200 apartments to residents and continues to furnish the properties, which violates safety regulations.
On being notified of the situation, the provincial construction inspectors on October 16 imposed an administrative fine of VND55 million ($2,375) on the developer. In addition, the firm was asked to complete inspections and compensate for the losses of the involved parties within one month.
Vietnam law allows foreigners to buy property, except land and not more than 30 percent of a residential quarters or apartment project. However, no foreigner is allowed to own real estate in areas deemed vital to national security and defense.
