(Yicai Global) Nov. 29 -- A local government in the scenic region of Moganshan has reclaimed the CNY420 million (USD59.7 million) piece of land that serial entrepreneur Jia Yueting reserved for his dreams of an electric car factory and an automotive theme park after almost three years of no progress being made.

Deqing county's land resources planning bureau cannot disclose how the proceeds of Leshi Eco-Auto's terminated land use rights in the Moganshan Economic Development Zone will be used, state-backed The Paper reported, citing a bureau employee. Eastern China's Moganshan is home to a national park, popular for hiking.

Jia resides in the US where he filed for bankruptcy last month with a personal debt of over USD3.6 billion. Creditors of the chief executive of Los Angeles-based electric vehicle startup Faraday Future have suspected him of hiding large fortunes.

Leshi Eco-Auto, a unit of Jia's former Leshi Holding Group, acquired the plot in Zhejiang province as the parent pledged to invest CNY20 billion (USD2.8 billion) to build a 3-square kilometer car factory there with an annual output of 400,000 vehicles.

As the project made no progress for nearly 36 months, the government fulfilled its regulatory duty to recover the land.

Editor: Emmi Laine