Chongqing Municipality, Supervision and Administration of Construction Land Several Provisions

Promulgated: October 8 2001
Effective: as of date of promulgation

Main contents: Users of construction land should utilize the land and commence the building works in conformity with the State Contract of Leaseholds with Consideration or the construction land approval documents; leaving land idle is prohibited (Article 3).
Idle land is defined as non-agricultural land on which, one year after the prescribed works commencement date, building works have not commenced, or the actual area developed is less than one-third of the required area, or investment is less than 25% of the stipulated total amount (Article 5). Where land is found to be idle, municipal and district administrative departments in charge of land should initiate proceedings to remedy the situation. When land has been mortgaged, the mortgagee should also participate in the proceedings (Article 6).
Idle land fees will be collected on idle land; in addition, other measures may be implemented. These include: extension of the development and construction period by up to one year; re-zoning the project; substituting another lot of land; inviting tenders or auctioning off the land in order to find a new user to continue the original project; revoking the leasehold or re-entering the land and reimbursing the user "with reference" to his investment (Article 7).
A leasehold contract can be cancelled without compensation in the following situations: two years after the works commencement date, development has not commenced; or two years after the works commencement date, investment in a project in a development zone is less than 25% of the stipulated total amount or the developed land area accounts for less than one-third of the required area (Article 9). Where infrastructure has been developed within a development zone and the leasehold contract is subsequently revoked, the value of investment in infrastructure will be assessed and suitable reimbursement provided (Article 11).
Related legislation: PRC, Land Administration Law (Revised), Aug 29 1998, CLP 1998 No.9 p27; PRC, Administration of Urban Real Property Law, Jul 5 1994, CLP 1994 No.8 p23 and PRC, Granting and Assigning Leaseholds in State-owned Urban Land Tentative Regulations, May 24 1990, CLP 1990 No.5 p14