Vietnam developer Novaland denies involvement in violations at Central Highlands property project

Real estate major Novaland asserted on Monday that it was neither aware of nor involved in any violations of the law by its partner or other parties concerned in a Central Highlands eco-resort and urban area project.

In a statement on the Dai Ninh eco-resort and urban area project in Lam Dong province, the firm said it had participated in the project as a development partner with Thien Vuong Real Estate Development and Investment Co., Ltd. The latter had acquired a stake in the project from Sai Gon Dai Ninh Lavender Tourism Investment Co., Ltd. in 2022.

Then, Sai Gon Dai Ninh Lavender had confirmed that it had held a 100% stake in the project owner – Sai Gon Dai Ninh Tourism Investment JSC (Sai Gon Dai Ninh Corp), which had obtained all necessary legal approvals to proceed with the project.

As soon as authorities began investigating alleged violations by Nguyen Cao Tri, CEO of Sai Gon Dai Ninh Corp, Novaland has demonstrated positive cooperation, providing all relevant documents to clarify its role in the transaction with Thien Vuong Real Estate Development and Investment Co., the statement said.

It is commitment to continuing its cooperation with law enforcement agencies to ensure that all details of the case are clarified, and to complying with all final decisions taken by relevant authorities in accordance with the law, it added.

It has been reported that in transferring the Dai Ninh project, Tri used the legal entity Sai Gon Dai Ninh Lavender to sign an agreement to transfer 100% of the shares in Sai Gon Dai Ninh Corp to Thien Vuong Real Estate Development and Investment Co. for VND27.6 trillion ($1.09 billion). However, Thien Vuong Real Estate Development and Investment Co. had paid only VND2.7 trillion when the case came to light.

The Ministry of Public Security’s investigative agency has indicated that Novaland was aware that the signing of transfer agreement by Sai Gon Dai Ninh Corp chairwoman Phan Thi Hoa and Tri was a violation of the law, because the Government Inspectorate had proposed land recovery from the project at that point in time.

Investigators have also alleged that Novaland knew that Tri had attempted to bribe officials to have the inspection’s conclusion “adjusted” from land recovery and project termination status to an extension of the project’s timeline. Despite this, Novaland proceeded to sign the illegal share transfer agreement.

The investigative agency has assessed that Novaland, listed on the Ho Chi Minh Stock Exchange as NVL, shares some responsibility in the transaction, including violations related to the second payment deadline. It has said that the developer made a deposit and transferred money to Tri despite knowing that the project was facing legal problems.

Earlier, the investigative agency had launched legal proceedings against Mai Tien Dung, former Minister-Chairman of the Government Office, for receiving a bribe of VND200 million ($7,900) from Tri.

Tri also offered the Government Office VND380 million ($15,000) to buy teacup sets as souvenirs to be presented at its anniversary celebrations, investigators have alleged.

NVL shares were up 2% at VND10,400 ($0.41) apiece at 2:30 p.m. on Tuesday.