The Hanoi People's Court is set to begin the trial of six defendants accused of participating in fraudulent land auctions marked by exorbitant pricing of up to 30 billion VND per square meter. Scheduled for March 6, 2025, at the Quang Tiến Community Hall, this high-profile case has attracted significant attention, particularly among real estate investors.
The defendants, which include Phạm Ngọc Tuấn (32), Ngô Văn Dương (29), and four others aged between 26 and 42, face charges of violating auction regulations as outlined by Vietnamese law. The case revolves around accusations of collusion aimed at artificially inflaming the prices of 58 land parcels during auctions held late last year.
According to the investigation, the defendants allegedly engaged in detailed discussions and strategized their actions at various meetings to determine the bids for these plots. A significant aspect of the alleged fraud includes submitting non-competitive bids only to drive the price up significantly during earlier rounds, eventually resulting in inflated auction outcomes. The strategy was reportedly aimed at ensuring the auction would not succeed if their inflated prices were met, instigated by the intention of establishing control over the bidding process.
Initial reports indicate the legal repercussions could be severe. Phạm Ngọc Tuấn, along with his co-defendants, planned their actions carefully, from researching individual land values to determining their maximum willingness to pay. Investigators disclosed Tuấn's sophisticated method for estimating property values indicated the parcels should net between 23 million and 32 million VND per square meter.
Nevertheless, during the fifth bidding round, the group is alleged to have significantly raised bid prices, with offers skyrocketing to amounts exceeding 30 billion VND per square meter. The forfeited bids during the sixth round, where defendants withdrew their offers entirely, resulted not only in the auction's failure but considerable financial losses for numerous stakeholders involved.
The damages incurred from this fraudulent practice have been quantified at approximately 420 million VND, predominantly affecting the Thanh Xuân Auction Company, which suffered losses exceeding 252 million VND, as well as inconveniencing 230 individual bidders who collectively lost over 165 million VND.
Prior to the trial, the defendants reportedly attempted to rectify some of the damage by addressing their financial liabilities voluntarily with the affected auction company, leading to partial compensation. Reports cite one of them expressing regret over the course of actions taken during the auction, indicating the rising awareness of public discontent over the misconduct highlighted by this case.
The societal impact of such misconduct looms large, raising significant apprehensions among investors about the stability and reliability of land auction processes. Authorities are currently under pressure to restore public confidence and enforce stricter oversight to prevent such instances from recurring, since illegal actions not only threaten individual investments but can disrupt broader market dynamics.
Organizations involved intend to cooperate with law enforcement agencies to bolster laws governing land auctions and instill ethical practices across this sector, urging fellow businesspersons to execute due diligence and transparency before engaging financially. This case serves as a monumental lesson on the importance of adhering to legal regulations and embracing ethical standards within Vietnam's burgeoning real estate market.