The project, which was due to be the building of a tourism complex in Ha Noi’s Luong Son District, was found to have a fake investment licence supposedly granted by the People’s Committee, said Trinh Van Vat, head of the Economic Investigation Department of Ha Noi Police.

The Huong Sen Joint Stock Company in the Central Highland province of Lam Dong was behind the project, which had an investment capital of USD1.5 billion.

Police were reportedly given a photocopy of the investment licence and decided to conduct an investigation. The result of the investigation, according to the Ha Noi police, was that the municipal People’s Committee had never assessed the project and never granted any investment licence for the project.

The People’s Committee affirmed that it did not issue the investment licence, which on the forged documents was No 6498CNDT/UB signed on December 26, 2008.

The Ha Noi police are co-ordinating with police in Lam Dong Province and relevant agencies to further investigate the Lam Dong Huong Sen Company and related cases.

According to Article 267 of the Criminal Code, producers of fake documents and seals will be sentenced to between six months and three years in prison and face fines of between VND5 million-50 million ($280-2,800), said lawyer Nguyen Thai Hoa, head of the Song Huong Law Office in Ha Noi.

"They could face 4-7 years’ imprisonment if their violations resulted in especially serious consequences," he said.