Legal information

Recently, many business owners have come to Yingting Law Firm to consult lawyers about the expropriation of investment-promoting enterprises. For example, a company in Nanjing, Jiangsu was forcibly demolished in December 2021. The enterprise was introduced as an investment-promoting enterprise in 1996. It has a land lease agreement, the lease period is 70 years, six acres of state-owned land, and a construction area of more than 6,000 square meters. The land was sold to a real estate development company in 2003, and its assessed value was nearly 20 million. The business owner asked the lawyer whether it is legal to sell the factory building and the land to developers without expropriation?

In fact, the core content of this issue is actually some issues related to land expropriation and compensation. Among them, there are several legal relationships:

First of all, the issue of renting land for 70 years involves the issue of renting land, because it involves the lease period of state-owned land, which generally cannot exceed the useful life of its land certificate. However, it is introduced as an investment promotion enterprise of the local administrative agency, so if it is signed for 70 years, its validity is generally recognized. However, there are many places where land certificates can be issued for this kind of leasing, but the company in this case does not have one.

Secondly, investment promotion companies are generally introduced by leasing land for construction projects, so the relevant companies may have land certificates. However, combined with the second layer of legal relationships behind it, it may be more difficult to apply for a land certificate. Because in 2003, this land was transferred to a real estate development company through bidding, auction, and auction by the relevant departments. In fact, when the property was transferred in 2003, the above-ground properties should have been expropriated and compensated. At that time, assessment, compensation, demolition, etc. were carried out in accordance with the urban house demolition management regulations. However, the relevant local departments did not do so, and the above-ground structures were not demolished until December 2021. This is the second level of legal relationship, whether it should be compensated or not, and the relevant departments are also suspected of administrative inaction.

Third, there is the issue of compensation for expropriation of houses on state-owned land. When an enterprise uses state-owned land as an investment promotion enterprise, the source of land use rights is completely legal. Therefore, its compensation should also refer to the compensation standard for houses on state-owned land, which is generally compensated according to Order No. 590. Compensation is divided into six major items: compensation for house value, relocation and transitional resettlement fees, loss fees for production and business suspension, incentive fees, decoration fees and equipment costs. These six major statutory compensations should be compensated according to the compensation standards.

If it is demolished without any formalities, this involves the fourth legal relationship, and demolition is illegal. If the demolition is illegal, you can sue the relevant departments and then file a lawsuit for compensation.

When encountering similar problems, you can consult a professional team of lawyers in a timely manner. The lawyers will safeguard the legitimate rights and interests of the enterprise in accordance with legal regulations, local policies, document notices from relevant departments, and relevant case precedents. You can also consult us. For political and commercial disputes, of course you should consult Beijing Yingting lawyers. We will provide detailed legal opinions based on the provisions of laws, regulations, local policy normative documents, and relevant cases, combined with some factual evidence of the case, and use legal knowledge to negotiate with the competent authorities to strive for a fair and satisfactory solution.

The legal knowledge in this article does not represent legal advice. If you encounter similar problems, you should analyze them in detail.