Vietnam: If the winning result of the license plate auction is canceled, will the winner eligible for a refund?

Vietnam: If the winning result of the license plate auction is canceled, will the winner eligible for a refund? (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Regulations on auction deposit

- Deposits shall be sent to a separate checking account of auction organizations. Deposit can be made from participation registration date until 3 days before auction date. Auction participants that win the auction shall have their deposits transferred to collection accounts of the Ministry of Public Security in order to be submitted to the state budget as per the law.

- Handling of deposits in specific cases shall conform to Article 39 of the Law on Property Auction.

(Article 12 of Decree 39/2023/ND-CP)

2. If the winning result of the license plate auction is canceled, will the winner eligible for a refund?

According to Article 19 of Decree 39/2023/ND-CP, auction results shall be cancelled under situations mentioned under the Law on Property Auction.

- Auction winners failing to confirm auction records are considered to have cancelled contract for sale of auction property.

- Notice on winning auction and written confirmation of won license plates shall be cancelled when:

+ Auction winners fail to adequately submit winning bid within 15 days from the date on which notice on winning auction is issued;

+ Auction winners fail to carry out procedures for car registration to attach the winning license plate within 12 months from the date of being issued with a written confirmation of the winning car license plate;

In case of force majeure events or objective hindrance, this time limit may be extended for a maximum of 06 months.

After the specified time limit, if the auction winner of car license plate fails to carry out the procedures for car registration in order to attach the winning license plate, the winning car license plate will be transferred to the registration and management system and the auction winner is not entitled to a refund of the paid winning bid;

+ Auction winners fail to guarantee legitimacy and adequacy of auction registration.

- Won license plates shall be available for auction again; deposits and winning bid submitted by auction winners shall not be eligible for refund but shall be submitted to state budget under cases specified above

Thus, if one of the cases where the winning result of the license plate auction is canceled as mentioned above, the individual will not be refunded. The deposit will be included in the state budget.

3. Regulations on Refund of winning bid in Vietnam

- If auction winners have not registered won license plates attached to vehicles within 12 months from the date on which written confirmation of won license plates or documents on extension of registration time limit due to force majeure or objective hindrance, the Ministry of Public Security shall send notice to address registered by auction winners in auction registration.

If auction winners decease, legitimate heirs of the auction winners shall receive refund of the winning bid (minus auction organizing costs as per the law and without interests) as per the law.

- Application for winning bid refund consists of:

+ Written application for refund of license plate winning bid;

+ Documents acknowledging inheritance or documents on distribution of inheritance notarized as per the law;

+ Written confirmation of won license plates;

+ Power of attorney (if any);

+ Citizen ID Cards of co-heirs.

- Within 15 days from the date on which adequate application for refund is received, the Ministry of Public Security is responsible for refunding winning bid to legitimate heirs of auction winners as follows:

+ If the winning bid has not been submitted to the state budget: Refund shall be made from collection account of the Ministry of Public Security in banks, foreign bank branches;

+ If the winning bid has been submitted to the state budget: the Ministry of Public Security is responsible for examining and cross-checking refund application against proof of payment made to the state budget and if the results are appropriate:

The Ministry of Public Security shall promulgate decision on refund, produce refund order for state budget revenues, and transfer to State Treasury where submission to the state budget is made in order to refund.

(Article 23 of Decree 39/2023/ND-CP)

Nguyen Ngoc Que Anh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE