Court highlights Empire Group and Cocobay Danang for investigation
Court highlights Empire Group and Cocobay Danang for investigation
Danang People's Court has forwarded the emergency letters of complaint and denunciations of Thanh Do Investment Development and Construction JSC (Empire Group) and its Cocobay Danang project to the investigation agency of Danang Public Security Department.
Empire Group and Cocobay Danang will be investigated by Danang Public Security Department
|
According to local media, Danang People's Court has just issued Document No.106 on forwarding the emergency letters of complaint and denunciations regarding violations at the Cocobay Danang project of Empire Group to the investigation agency of Danang Department of Public Security.
Accordingly, 450 condotel owners at the Cocobay Danang project had sent letters, alleging cheating on the part of the developer related to the sales of real estate, as well as violations of the laws on real estate and taxes by Empire Group.
First, buyers accused Empire Group of not keeping its commitment of paying an annual yield as it announced that it would stop paying from December 1, 2020 without having consulted them. This breaches the purchase contracts signed, in which Empire Group which made a 12 per cent profit commitment for eight years, irrespective of the business performance of the developer.
Second, Empire Group has changed the project plan without consulting buyers. After signing sales contracts of condotels in 2016-2018, the group has arbitrarily converted condotels into normal apartments without informing owners, impacting the economic benefits of the project and buyers alike. The developer even asked buyers to pay an additional 15 per cent of the apartments’ total value to cover the conversion into an apartment.
Additionally, the letters also pointed out numerous violations by Empire Group, including using the advance monies for purposes outside the purview of its committed purposes and failing to issue handover guarantees, as well as collecting tax in contravention of regulations, and appropriating the tax revenue of the state.
Previously, in late-2019, Empire Group announced that it could not keep its commitment of paying annual yield and would stop paying from December 1, 2020. The group proposed three solutions, including buyers co-operating with Empire Group on the commercial operations of the condotels; buyers leasing their condotels out by themselves; or liquidating the contract and receiving a refund from the developer.
