5 people involved in the auction of '30 billion VND per square meter of land' were detained

On December 3, Mr. Pham Ngoc Tuan, Ngo Van Duong, Nguyen Duc Thanh, Nguyen The Trung, Nguyen The Quan were detained and investigated by Hanoi Police for their behavior. Violation of regulations on property auction activities.

These people said that initially, they determined the price to be only about 30 million VND/m2 - which could be sold at a higher price, so they discussed ways to control the auction results through 6 mandatory rounds.

According to the plan, if the price paid by investors in round 4 is higher than 30 million VND/m2, then in round 5 this group will "offer a sudden high price to win overwhelmingly". When it comes to round 6, the whole group agrees to not participate anymore, with the purpose of "not allowing the land lot to be successfully auctioned".

In total, 36/58 plots of land were paid by these suspects in collusion, paying as high as nearly 100 million VND/m2 and then not bidding anymore. In particular, Pham Ngoc Tuan paid up to 30 billion VND/m2.

Previously, on November 29, the Soc Son District Land Fund Development Center organized an auction of 58 plots of land in Dong Lai village, Quang Tien commune. The plots of land have an area of ​​90-224 m2 with a starting price of 2.4 million VND per m2, the deposit is 223-550 million VND per plot (20% of the total value of the plot of land calculated according to the starting price).

According to the regulations, the auction is held directly, must go through at least 6 mandatory rounds. The customer who offers the highest price in round 6 will be the auction winner.

In the 5th round, some plots of land were offered unusually high prices by participants. Among them, Mr. Pham Ngoc Tuan paid 30 billion VND per square meter for 3 plots of land (numbers A12, A13, C6).

In the 6th round, the incident occurred when a group of customers showed signs of "sabotaging" this auction, according to a leader of the People's Committee of Soc Son district. Specifically, many customers in the previous rounds had bid up to more than 100 million VND per square meter, including 2 lots that were offered up to 30 billion VND per square meter. In the 6th round, they again bid 0 VND, then asked to stop participating in the auction.

District leaders said this situation caused 30 out of 58 plots of land to be unable to be successfully auctioned.

Late last year, Hanoi recorded a case of "wrong bidding" of up to 4.28 billion VND for a square meter of auctioned land in Me Linh district - 142 times the starting price. However, right after the auction, this person discussed with the organizing unit about "writing the wrong price because it was his first time participating and he was stressed". He also asked the authorities to return his deposit of more than 600 million VND and was approved.

In August and September this year, several land auctions in suburban districts of Hanoi attracted hundreds of customers with more than 1,000 registrations. The highest winning prices also continuously set records, such as in Hoai Duc at more than 133 million VND per square meter, and Thanh Oai at more than 100 million VND per square meter. Of which, the auction in Thanh Oai recorded that about 80% of the winning customers did not pay.