Govt., commercial bank battle over BK/BaiShanLin housing lands

Sep 07, 2017 News, https://www.kaieteurnewsonline...anlin-housing-lands/

In a clear move that its patience is running thin, Government has filed court actions to take back land in Providence, East Bank Demerara, which was sold in 2014 to businessman, Brian Tiwarie, but flipped shortly after to a Chinese investor.

The lands were recently advertised for sale by Receiver/Manager, Nigel Hinds, who was appointed by a commercial bank after Sunset Lakes, which controlled the 100-acres, was unable to make its loan payments.

Sunset Lakes was formed by Tiwarie weeks after he acquired the land. He turned around and sold it to the local owner of BaiShanLin, a Chinese company which had spread its tentacles into a number of business sectors but ended up in financial troubles.

Tiwarie was one of several businessmen who received large swaths of land on the East Bank under questionable circumstances.

Yesterday, the Ministry of Communities, under  which the Department of Housing falls, made it clear that it has the right to go after the lands and after Sunset Lakes, now controlled by BaiShanLin’s local principal, Chu Hongbo.

However, the government will have to contend with the bank which wants back its money from Sunset Lakes. The bank is claiming first lien on the lands.

Yesterday, the ministry said that the Central Housing and Planning Authority (CH&PA) has commenced court proceedings in an effort to repossess the plot of land, which was recently advertised for sale by Sunset Lakes.

In a paid advertisement in at least two daily newspapers, dated August 30, 2017, it was stated “The Receiver-Manager of Sunset Lakes Inc., invites tenders for local and foreign parties interested in purchasing 100 acres of land en bloc or less, located in Providence…”

However, the ministry disclosed that since July 20, 2017, CH&PA through an external attorney, Robert Ramcharran, attached to the law firm Luckhoo and Luckhoo, initiated legal action in the High Court of the Supreme Court of Judicature against Sunset Lakes Inc. as it relates to property situate at Parcel 130 Plantation Providence, East Bank Demerara.

Among other things, the legal action is seeking declaration that CH&PA is entitled to rescind the Agreement of Sale and Purchase made and entered into at Georgetown, Guyana between the authority and the defendant on February 7, 2014.

CH&PA is also seeking an order rescinding the Agreement of Sale and Purchase made as well as an order that the claimant (CH&PA) has the right to refund to Sunset Lakes the sum of $458,180,000, representing the value of the land. The court is also being asked to allow for CH&PA to collect 10% of the sum paid as a penalty for breach of the terms and conditions of the agreement– about $45,818,000.

CH&PA is also asking orders directing the Registrar of Lands to recall and cancel the Certificate of Title regarding the land and to have it re-registered as belonging to the authority.

An application was also made for the court to order that the land be handed over to the possession of CH&PA.
The land was sold in 2014 by CH&PA to Tiwarie, a contractor, for development into a gated community.
However, eight weeks after securing the lands from CH&PA for US$2.2M (approximately $440M), Tiwarie, who owned Sunset Lakes, turned around and flipped the company to BaiShanLin for US$8M ($1.6B).
BaiShanLin was unable to pay Tiwarie the US$8M it promised and early last year, the businessman took BaiShanLin to court, asking for his balance of US$4M. Tiwarie also demanded back his company Sunset Lakes and wanted the court to forfeit the US$4M that BaiShanLin had advanced him.
On the lands currently, BaiShanLin had started to build a number of luxury homes, announcing prices upwards of $50M.
However, all that remains now is the fence and ghostly, unfinished properties. There has been little work in the last two years.
BaiShanLin and its principal, Chu Hongbo, now a Guyanese citizen, are now reportedly concentrating on gold mining.
There are more than 20,000 applications pending at the CH&PA, with Government announcing plans to build duplexes and apartments for low income families in the short term.
Large swaths of lands behind Republic Park and Providence have been sold under questionable circumstance to several private developers who were looking to cash in on the booming housing drive between 2010 and 2014.
Many of those parcels have not been developed as the housing market stagnated. Many of the developers, some of them businessmen close to the previous administration, were left in financial difficulties.
There is evidence that a number of the developers may have illegally sold the lands they have committed to develop, for millions.
The evidence that is emerging now speaks of some developers breaching their conditions of sale, by illegally selling off to overseas investors and others.
There is no word whether the applicable profit taxes were ever remitted to the Guyana Revenue Authority.

IRFAAN responds

There is another transaction similar to Sunset Lakes.

In August 2014, Luxury Realty, owned by Roopnarine ‘Ravie’ Ramcharitar, a top deputy of Dr. Ranjisinghi ‘Bobby’ Ramroop, bought and sold a plot– 28.8 acres all in the same day to a foreign buyer.

Ramcharitar paid $173M to CH&PA. That same day, in the presence of CH&PA, he sold it to the overseas businessman for over $570M (US$2.8M).

Heading the ministry then was former Housing Minister, Irfaan Ali.

Yesterday, he issued a statement on the matter which has been making the news recently.

“I wish to respond to the distasteful, mischievous and dishonest articles of Kaieteur News in relation to the Providence, East Bank Demerara lands. I continue to read with shock the continuous misrepresentation of facts by the Kaieteur News. These facts have been in the public domain on many occasions for years now.

Why is it that the newspaper continues to ignore the fact that the names of all private developers were made public on many occasions? This is not a new discovery.

Secondly, the list was requested in the National Assembly and submitted, there was no secret or hidden agenda. All these proposals by developers and investors were responses from expression of interest notices publicly advertised.

Further, the terms and conditions of all the contracts are the same. All the developers are bounded by the same conditions. It is a total misrepresentation to suggest otherwise and at some point basic decency and honesty must be adhered to in reporting. There was no preferential treatment for any of the developers.

The only motive of the Ministry of Housing was to facilitate private investment and capital in expediting and expanding the housing and construction sector to the benefit of the economy.

 I remain proud of the expansive development, investment and benefit that the East Bank Development has brought to thousands of Guyanese.

In relation to how companies are owned and operated; the Ministry did not involve itself in the operations of the developers. The conditions of sale are listed in the agreement with the developers and any Government can act based on the agreement.”

The 100-acres lands at Providence, East Bank Demerara.