Police take legal documents for the arrest at the company's headquarter on Wednesday afternoon. — VNA/VNS Photo

HCM CITY — The Ministry of Public Security and HCM City’s Police Department arrested and began legal proceedings against Nguyễn Thái Luyện, Chairman of the Board and Chief Executive Officer of Alibaba Real Estate Joint Stock Company on Wednesday afternoon at the company’s headquarter in Kha Vạn Cân Street, Thủ Đức District, HCM City.

The police also arrested Nguyễn Thái Lĩnh, director of the company. Lĩnh was Luyện’s younger brother.

Both Luyện and Lĩnh were remanded in custody for four months to investigate allegations of fraudulent appropriation of property.

Recently, the company was accused of fraudulently selling houses and land in bogus projects in HCM City and the southern province of Bà Rịa–Vũng Tàu and appropriating thousands of billions of đồng.

According to the ministry, violations of the law on planning, management and usage of land as well as fraudulently selling bogus projects are reportedly taking place in many localities, causing public concern.

Previously, the ministry coordinated with banks to freeze accounts of Lĩnh and Võ Thị Thanh Mai, head of the company’s legal department. — VNS