Hainan Daily reported on April 3 that Danzhou authorities have decided to confiscate 39 buildings on Evergrande’s massive Ocean Flower Island project in Haihua island.

The paper said that eight officials were previously investigated and handled, including Zhang Qi – the former party secretary for Danzhou, and Lin Dong – former mayor of Danzhou city.

Authorities will further investigate and deal with other relevant responsible persons under regulations, disciplines, and laws.

It also promises the protection of the legitimate rights and interests of all concerned parties.

As part of a probe into illegal planning permits, the Danzhou government ordered a subsidiary of Evergrande to remove 39 apartment blocks in December last year. The investigation also scrutinized officials who allowed the project to proceed while turning a blind eye to their environmental impact on the local area.

The 39 Haihua island buildings initially faced a ten-day deadline for removal or forced destruction. Evergrande subsequently applied for administrative reconsideration on January 4.

Haihua Island, or “Ocean Flower Island,” is the world’s largest man-made mega-resort developed by the now cash-strapped Evergrande China in the country’s southern Hainan province.

The mega project took over a decade to construct and was fully opened in late 2020. According to the South China Morning Post, it has attracted over 5.5 million tourists since January last year.

Business Insider reported that Evergrande had invested roughly 13 billion dollars in the artificial mega project. The potential dismantling of 39 buildings was one of many challenges faced by the world’s most debt-ridden developer, which is now struggling to repay 300 billion dollars in liabilities.

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