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Shanghai land dispute hinges on contract

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An agreement that a Hong Kong businessman signed last year with Shanghai's biggest electrical goods maker and a company affiliated with a district government is the key to his dispute over compensation for land he had invested in.

Businessman Sun Yin-piu is seeking redress from the SVA Group, the electrical components manufacturer, over property in Xuhui district that housed a residential project which was never occupied.

Now the development is being demolished because the district government wants to put a medical research and education centre there.

Mr Sun presented his argument to Shanghai No1 Intermediate People's Court yesterday. The hearing lasted one hour. No ruling was made.

Bao Bingzhang , Xuhui district vice-mayor, reiterated on Monday that the district government was ignorant of the dispute between Mr Sun and SVA when it paid the manufacturer 230 million yuan in January for the 18,000 sq metre site.

Mr Sun signed a contract with an SVA subsidiary in 1995 to rent the land and develop a residential project there.

When the subsidiary went bankrupt three months later, he tried to enlist the manufacturer's help in obtaining a land permit, he said.

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