The offices of Sông Đà Nha Trang Joint Stock Company on Bãi Dương Street, Nha Trang City, Khánh Hòa Province. The company's former general director has been arrested for fraudulent appropriation of assets. — Photo laodong.vn

KHÁNH HÒA — Police in the southern province of Khánh Hòa have launched criminal proceedings against the former general director of Sông Đà Nha Trang JSC.

Nguyễn Chí Uy, 43, residing in Hà Nội, was detained on Tuesday afternoon on charges of “fraudulent appropriation of assets” under Article 174 of the 2015 Penal Code, Vietnam News Agency reported.

The police also searched the company’s offices on Bãi Dương Street, Nha Trang City, Khánh Hòa Province.

According to the investigation, Sông Đà Nha Trang JSC was approved as the investor behind the construction of the Cồn Tân Lập residential area project in Xương Huân Ward, Nha Trang City.

During his time as general director, Uy arbitrarily divided the approved land area – which was supposed to be used as a park – and sold small plots to people in Hà Nội, HCM City and Khánh Hòa Province, causing huge consequences.

The company had mobilised capital from many people and transferred land plots illegally.

Police also notified customers who have contributed capital and bought and sold products of the Cồn Tân Lập residential project to contact the investigation agency in order to clarify related issues.

Cồn Tân Lập residential project, approved in 2011, has a total area of over 7.9ha and a total investment of over 2.7 trillion. — VNS