[NEWS] - Tightening conditions for participating in land auctions

The Ministry of Natural Resources and Environment has just proposed the case that participants in the auction voluntarily drop their stakes and are not allowed to participate in land use auctions. It is necessary to tighten regulations on activities of participating in land auctions and introduce sanctions for violators.

The Ministry of Natural Resources and Environment has just submitted a report to the Government on the issuance of a Decree amending and supplementing a number of articles of the decrees guiding the implementation of the Land Law. This is a decree implemented according to regulation 1 decree amending 6 decrees related to land.

In the draft amending and supplementing a number of articles of Decree No. 43/2014/ND-CP dated May 15, 2014 detailing the implementation of a number of articles of the Land Law, the Ministry of Natural Resources and Environment (Ministry of Natural Resources and Environment) TN&MT) has proposed to add more binding regulations on auction of land use rights.

Five mandatory conditions are:

Specifically, for the auction of land use rights when the State allocates land with the collection of land use levy or leases land, according to the draft Decree, organizations participating in the auction of land use rights must satisfy all 5 conditions: 

First, they are subject to land allocation or land lease by the State according to the provisions of Articles 55 and 56 of the Land Law.

Secondly, having their own capital for project implementation is not less than 20% of the total investment, for projects with a land use scale of less than 20 hectares; not less than 15% of the total investment for projects with a land use scale of 20 hectares or more; has experience in implementing investment projects using land.

Thirdly, deposit in accordance with the provisions of the law on investment.

Fourthly, do not violate the provisions of the law on land in case you are using land allocated or leased by the State to implement other investment projects.

Fifthly, must pay a deposit and have collateral to the auction organization to ensure the financial capacity to implement the project when winning the auction according to the approved plan. For individuals participating in the auction of land use rights, the first and fifth conditions must be met. In case an individual participates in the auction of land use rights to implement an investment project, the above 5 conditions must be fully satisfied.

It is necessary to determine the starting price for the auction of land use rights to ensure closeness to the market price. Simultaneously supervise the asset auction enterprise, increase the relationship between the auction organization and the police agency to ensure fairness, security and order. Flexible application of auction forms.

Ngoc Duc

Theo Financial Magazine