A real estate company has lost a 200 million yuan ($29.30 million) deposit and the right to buy a piece of land after failing to pay the amount bid at auction.

Beijing municipal bureau of land and resources yesterday announced they are cancelling Beijing Dalong Weiye Real Estate's qualification after they did not present the payment on time, the 21st Century Business Herald reported.

On November 20, 2009, Dalong Estate won the bid for a piece of land in Beijing's Shunyi district and rewrote the record on land purchases in 2009. The property developer agreed to pay 5.05 billion yuan for the plot.

However, the market and the land regulator doubted Dalong's capability to pay for the deal as only the deposit money accounted for 60 percent of the company's total profit in 2009.

On January 22, eight developers including Dalong were suspended from purchasing new land due to their delay in payments or contracts signing, which was a sign of the government's action to rein in the overheated land trading and property market.