Hanoi police have detained five individuals suspected of manipulating a land auction in Soc Son District, where one bid reached an absurd price of VND 30 billion (approximately $1.2 million) per square meter. The individuals are under investigation for violating regulations on property auctions as defined in Article 218 of Vietnam’s Penal Code.

Details of the scheme

The suspects, including Pham Ngoc Tuan (born 1991) and Ngo Van Duong (born 1994), allegedly colluded to rig the bidding process for land use rights in Dong Lai Village, Quang Tien Commune, Soc Son District. The auction was organized as part of an infrastructure development project.

Tuan, with support from Duong and others, acquired bidding documents from Thanh Xuan Company, which managed the auction. To secure their desired plots, the group agreed to artificially inflate prices during the bidding rounds.

Tuan prepared a price guide estimating land values between VND 20 million and VND 32 million per square meter (approximately $820–$1,300). The group’s strategy involved bidding up to these limits in early rounds and then inflating prices drastically in later rounds if external bids exceeded their maximum threshold.

In cases where outside bidders exceeded their maximum price, the group would place exorbitantly high bids in the fifth round - up to VND 30 billion/m² (12,000 times the starting price). This maneuver caused 36 out of 58 plots to remain unsold, forcing a rescheduled auction.

By using this strategy, the suspects avoided forfeiting their deposits and positioned themselves for future bidding opportunities.

To execute their plan, the suspects transferred VND 3.6 billion to Thanh Xuan Company as auction deposits.

Police investigation and arrests

The unusual bidding patterns at the November 29 auction prompted scrutiny from Hanoi’s police chief. The Economic Crimes and Corruption Division launched an investigation, uncovering the group’s coordinated efforts to undermine the auction process.

The suspects are accused of exploiting legal loopholes to disrupt auctions and influence land use rights sales, an area the police have flagged for increased oversight. The authorities are compiling evidence to formally charge the individuals and hold them accountable under Vietnam’s Penal Code.

Hanoi police emphasized the importance of addressing legal loopholes in property auctions to prevent similar schemes. Relevant agencies have been instructed to strengthen monitoring and enforce strict penalties for violations in asset auctions, particularly those involving land use rights.

Quang Phong