HCM City Department of Construction has rejected Ho Chi Minh City Real Estate Association's plea to keep an illegally-built project on the banks of the Saigon River.

Thao Dien Sapphire project by Saigon River.

"Our inspectors concluded that the proposal to keep Holm Residence or Thao Dien Sapphire project to increase the residential area, and in return the investor will pay 50% of the value of the illegally-built construction, is unfounded and can't be accepted," the department announced in an official document.

According to the department, the association wrongly cited Resolution 121 on penalties on construction activities which stated that investors can keep their constructions if they pay the fine and 50% of the value of the illegally-built construction. This can only be applied to constructions that have been completed and put into use.

Moreover, Decision 22 issued in 2017 also stated that public constructions on the protection corridor must be approved by the authorities. The illegal pools for private villas built by investor TSD Company were not approved by the authorities or a public construction so they must be removed.

The TDS Company has already removed 30% of the illegal constructions and asked to extend the deadline to September 22. If the company fails to meet the deadline, the authorities in District 2 will forcibly dismantle the rest.

The TDS Company increased the total area of their ground floor 1,127 square metres more than the registered and trespassed on the river protection corridor. They also built new construction that is not included in the registered planning and was fined VND1bn (USD44,000). However, the Ho Chi Minh City Real Estate Association backed TDS and proposed to keep the project.

dtinews