Z, legal representative and general manager of Company Y, held 16 mu of industrial land with 14,000 square metres of buildings on a 50-year collective land lease. The site fell within a relocation area. To obtain a larger compensation, Z — knowing the buildings had neither title certificate nor planning permission — directed staff to alter a copy of the planning permit to record 12,000 square metres, and, with W, altered invoices worth over RMB 90 million to support equipment relocation claims.

Issues

Whether the conduct constituted contract fraud or the separate offence of forging documents; the extent of the inflated claim actually paid; and the availability of a suspended sentence.

Outcome

Li Xiaohua acted for Z. The court, having regard to the sums actually obtained, restitution and the mitigating circumstances, convicted Z of contract fraud and imposed a sentence with suspension.