Court confirmed FAS decision on a complaint with regard to competitive bidding organized by Rosimuschestvo

The Antimonopoly Service pronounced legitimacy of the decision of Rosimuschestvo on the winner of competitive bidding to sell shares “No. 102 Bridge Road Enterprise”

In February 2017 the Federal Agency for State Property Management (Rosimuschestvo) organized competitive bidding to sell 100% shares of “No. 102 Bridge Road Enterprise” OJSC. The winner became the bidder who had offered 5 million RUB for the shares.

One of the bidders disagreed with the winner selection and complained to FAS, claiming that should have won the tender because his bid was higher - 5.7 million RUB.

Investigating the complaint the antimonopoly authority established that the claimant had not signed the bid, and, therefore, the organizer of competitive bidding had not considered it.

Head of FAS Department for Control over Construction and Natural Resources, Oleg Korneev, pointed out: “The Law on privatization sets a number of mandatory requirements to the structure of a bid to sell the state package of company shares and to the documents submitted simultaneously with a bid. They include, in particular, the requirement that all sheets of submitted documents should be signed by the bidders. Otherwise, the organizer of competitive bidding cannot be certain whether a bidder is truly prepared to conclude a contract for acquiring property at the offered price”.

On these grounds, FAS considered the complaint unjustified and pronounced legitimacy of the actions of Rosimuschestvo selecting the winner. The bidder disagreed with the decision of the antimonopoly body and filed a lawsuit. Moscow Arbitration Court, however, dismissed the claim.