High Court liquidates two land banking firms

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Two companies that mis-sold green belt land for investment to the public have been ordered into liquidation in the High Court following a Government investigation.

The investigation by Companies Investigation Branch (CIB) of the Insolvency Service found that Firstland Capital Limited, the owner of the land on the outskirts of Wickford in Essex, used a related company called The Crown Land Corporation Limited and also two selling agents to market the plots to investors both here and in Bahrain at hugely exaggerated prices on the basis that planning permission to develop the land was very likely to be granted. In reality, there was no prospect of such permission being granted.

The land was also marketed through two websites – www.askfirstland.com and www.crownland.co.uk. Investing in undeveloped land was said to have been made “as easy as 1-2-3″”.

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