COURT SUPPORTED FAS IN PROTECTING LEGITIMATE RIGHTS OF A DEVELOPER IN THE TVER REGION

The Ministry of Property and Land Relations of the region are obstructing developers in land use planning and management

At the end of 2018, FAS considered a complaint of “Aviator” against actions of the Ministry of Property and Land Relations of the Tver region undertake in the course of considering an application for lease of newly formed land plots without an auction for further building residential facilities.

In July 2017, following an auction, the company and Tver Authority concluded contracts for land plot lease* and integrated urban development** - residential construction.

It should be pointed out that later the leased plot planned by the developer for separation and further building up, was transferred from municipal property to the public property of the Tver region.

In October 2017, the company, observing the necessary procedure, filed a statement to the Ministry to lease to it newly formed land plots to build up without an auction. Technically the plots form a single land plot earlier leased by the company from Tver City Authority.

As FAS Commission established, the Ministry was checking possible restriction for us of the plots ad concluded that the contract between the developer and Tver City Authority for integrated urban development, concluded on the basis of auctions, was invalid so the company could not claim to lease the newly formed plots without competitive bidding. The refusal was given to the developer in breach of the 30-day period.

“Due to the Ministry’s faulty, the developer incurred losses paying the lease of the land plot and being unable to start residential construction. Moscow Arbitration Court fully supported FAS decision and order. The Ministry must reconsider the company’s application”, said Deputy Head of FAS Rachik Petrosyan.

Reference:

* Land plot lease contract, 69:40:0100120:1251 cadastre number, location: No. 370-1, Second Krasin St., Tver the Tver region.

** Contract for integrated urban development on the land plot, 69:40:0100120:1251 cadastre number, location: No. 370-1, Second Krasin St., Tver the Tver region.