AUTHORITIES CAN BE FINED FOR UNLAWFUL REFUSALS TO ACCEPT DEVELOPERS’ DOCUMENTATION

FAS drafted amendments to the Code of the Russian Federation on Administrative Violations clarifying liability of officials of the government agencies for breaching construction procedures

The Code of the Russian Federation on Administrative Violationswill specify liability of officials of the government agencies for refusing to accept documents and setting unlawful requirements to applicants and documents.

The amendments to the Code on Administrative Violations are drafted due to the changes to the Federal Law “On Protection of Competition” coming into effect (https://fas.gov.ru/news/25548) that extend the grounds for appealing actions of the authorities in the construction sector.

Since 10 August 2018, FAS considers complaints regarding the urban development authorities in the part of refusing to accept documents or setting unlawful requirements for them under the fast-track procedure (7-14 days).

Deputy Head of FAS Rachik Petrosyan emphasized: “The document is under consideration by the Government. It is expected that in case of an unreasonable refusal to accept an application, for example, for a construction permit, FAS shall not only issue a binding order to the authority but an official responsible for the violations will be fines up to 5000 RUB, and in case of repeated violation – up to 50,000 RUB or up to 2 years disqualification”.