Hanoi Issues Ultimatum to FLC Group: Reclaim Unused Land to Avoid Consequences

Hanoi’s ultimatum to FLC Group: “Use it, or lose it!”

FLC Group, a scandal-ridden developer, is facing a tough decision regarding four land plots in Hanoi’s Nam Tu Liem district. The municipal People’s Committee issued an ultimatum, stating that if these plots remain unused, they will be revoked. These plots, part of the ĐM1 urban area project in Dai Mo ward, have been sitting idle for years.

To give FLC Group a chance to develop the land, the committee has granted a 24-month extension. During this period, FLC must meet all financial obligations, including land use fees and rental payments for the four plots, in accordance with legal regulations. Failure to develop the land within the extended timeframe will result in the plots being reclaimed without compensation.

Local authorities, including the Tax Department, the Department of Natural Resources and Environment, and Nam Tu Liem district, will oversee FLC’s compliance with these obligations. If the project continues to stagnate, a report will be submitted to the city People’s Committee for further action.

Founded in 2001 as a law office, FLC Group evolved into a diverse entity with interests in real estate, aviation, education, agriculture, and more. However, the group’s chairman, Trinh Van Quyet, ran into legal trouble after selling millions of FLC shares unlawfully in 2022. This resulted in investigations into stock manipulation and financial misconduct.

Since these legal issues arose, FLC Group has struggled to restructure, with its total assets decreasing by 40% as of mid-2024. Many projects across different provinces have been revoked or put on hold. The fate of the company hangs in the balance as it navigates these challenges.