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Recently, an administrative penalty decision published on the official website of the Xishan District People's Government of Kunming City has attracted attention. Yunnan Biji Group Real Estate Development Co., Ltd. (hereinafter referred to as Biji Real Estate Company) did not build according to the plan, the greening rate and building spacing of the community involved did not meet the planning permit requirements, and caused adverse social impacts such as the project being left unfinished. The violation was serious, and the Xishan District Urban Management Bureau imposed the maximum penalty on its illegal and irregular behavior.

The Paper noted that Biji Real Estate Company had applied to the court for bankruptcy reorganization in 2021. A year later, the company's bankruptcy reorganization plan was voted through.

The Paper (www.thepaper.cn) learned that Biji Real Estate Company was established in 2002 and is a member of Yunnan Biji Construction Group. It is a company mainly engaged in real estate. Biji Real Estate Company is the developer of Kunming's "Biji Mingcheng" community, which is divided into two phases, located within the second ring road of Kunming, less than 1 km away from the Xishan District Government and only 3 km away from the downtown commercial district.

However, after the first phase of the community was successfully completed and put into use, the second phase was suspended for many years due to the developer's broken capital chain. "Since 2015, affected by the macro environment, real estate industry regulation, and the company's long-term short-term loans and long-term use, capital mismatch and other phenomena, the company's capital chain was broken and fell into a serious debt crisis. The company's core assets were seized by creditors for many rounds, and a large number of lawsuits and enforcement cases seriously affected the company's normal operations, so that cash flow was completely exhausted." This is what the Xishan District People's Court of Kunming introduced in a message published in 2022.

The administrative penalty decision stated that on February 6 this year, the Urban Management Bureau of Xishan District, Kunming City received a task assignment from the Office of the Leading Group for Resolving Historical Real Estate Issues in Xishan District, requiring it to investigate and deal with the issues such as the measured building density and greening rate of the Biji Mingcheng project in Block D (Tudui Village) of Area 4 of the Xishan District Urban Village Renovation, which did not meet the requirements of Kungui Conditions (2010) No. 0250, and the measured building location, building spacing, and building setbacks, which did not meet the planning permit requirements.

On February 9, the Xishan District Urban Management Bureau opened an investigation because the project's construction unit, Biji Real Estate Company, was suspected of not constructing in accordance with the provisions of the construction project planning license.

Block D in Area 4 is the second phase of Biji Mingcheng. In August 2020, some owners of the second phase moved into an unfinished building without water and electricity, which attracted media attention.

The administrative penalty decision shows that it has been found that the Biji Mingcheng project in Block D (Tudui Village) of the No. 4 Urban Village Reconstruction Area in Xishan District is located at the intersection of Erhuan West Road and Xiyuanpu Road in Xishan District. It has five residential buildings and supporting buildings and underground parking spaces. In 2013, it obtained the "State-owned Land Use Certificate", "Construction Land Planning Permit", "Construction Project Planning Permit" and "Housing Construction Project Construction Permit". The construction units are Linzhou Jianzong Construction Engineering Co., Ltd. (above ground) and Yunnan Biji Construction Group Co., Ltd. (underground). The contract start date is April 5, 2013, and the contract completion date is July 8, 2014. The actual completion time of the project is March 2024.

Previous publicity of “Famous City of Biji”.

After investigation and questioning and on-site verification with Yunnan Biji Construction Group Co., Ltd., and combined with the completion measurement results report and other materials, it was found that the project had two problems: First, the greening rate did not meet the planning permit requirements, specifically: the planned green area was 12,450 square meters, and the measured green area was 10,644.24 square meters, a decrease of 1,805.76 square meters from the planning permit; the planned greening rate was 47%, and the measured greening rate was 40.18%, a decrease of 6.82% from the planning permit; second, the above-ground construction area of ​​the 13 buildings in the project is 24,781.89 square meters, plus the underground construction area of ​​1,649.36 square meters, with a total construction area of ​​26,431.25 square meters. The distance between Building 13 and Building 12 was reduced by 1.08 meters, and Building 13 as a whole was displaced 1.08 meters to the west, which did not meet the planning permit requirements.

"Yunnan Biji Construction Group Co., Ltd.'s behavior is a case of not building according to the plan." The Xishan District Urban Management Bureau stated in the above-mentioned penalty decision that on July 22, the company was served with an "Administrative Penalty Hearing Notice" in accordance with the law, informing it of the facts, reasons, basis and content of the proposed administrative penalty decision. The company did not make a statement, defense or request a hearing within the prescribed time limit.

The Xishan District Urban Management Bureau believes that the above-mentioned behavior of the company violates the provisions of Article 43, Paragraph 1 of the "Urban and Rural Planning Law of the People's Republic of China". In view of the fact that the construction was not carried out in accordance with the provisions of the "Construction Project Planning Permit", and caused adverse social impacts such as the project being left unfinished and the masses petitioning, the violation was serious, and the maximum penalty was imposed on its illegal and irregular behavior. At the same time, the project is a project to resolve historical problems left over from real estate. According to the relevant policies for resolving historical problems left over from real estate and the Xishan District Natural Resources Bureau's opinion that the Biji Mingcheng project in Block D (Tudui Village) of Area 4 of the Urban Village Reconstruction in Xishan District can be identified as it is, a fine was imposed for insufficient green area, with a total fine of 5,580,562.5 yuan.

The Paper noted that Biji Real Estate Company had applied to the Xishan District Court for bankruptcy reorganization in 2021. A year later, the company's bankruptcy reorganization plan was successfully voted through.

On the morning of August 20, The Paper called the phone number published by Biji Real Estate Company. The staff who answered the phone claimed to be from the "Bankruptcy Administrator's Office" and was not clear about the fine. "The real estate development company has gone bankrupt and is planning to reorganize. It is in the implementation stage, and we are only responsible for supervising the implementation."

"The fine must be paid within 15 days from the date of receipt of this penalty decision. If the fine is not paid within the deadline, an additional fine of 3% of the fine amount will be imposed every day." A staff member of the Urban Management Bureau of Xishan District, Kunming City told The Paper that the aforementioned company has not yet completed the relevant procedures for paying the fine.