In the scope of the function of filing a claim on the protection of state interests, the cadastral affairs of two land plots located at 22 Yeghvard Highway and 64 Anastas Mikoyan Str.,  Davtashen district were investigated in the Prosecutor’s office of Yerevan city.

Due to the investigation it was found out that they were one unified unit. The garden with the surface of 6.06 ha located at 4th Davtashen district was put up at auction for granting by lease on  January 17, 2003, where was Ye. Gh. was the winner.

Afterwards, under the decision of the Mayor of Yerevan of February 3, 2003 the same land plot was leased for 25 years (lease payment amounted to AMD 2 000 900 annually) for the purpose of organizing an entertainment and recreation area. At the same time, the auction starting price of the preemptive right to purchase the lease of the land plot amounted to USD 60600 to be converted into Armenian drams which was transferred to the bank account of the municipality by the applicant. As a result of the auction several obligations were defined for the winner, including making an investment in that area in the amount of AMD 300 000 000, completion of the construction until 2006, payment of lump sum lease payment for three months. After one month of the transaction, however, without fulfilling the abovementioned obligations and conditions of the concluded lease contract, the territory of the garden was alienated to Ye.G on March 28, 2003.   On 4 April a contract on the direct sale of the garden was concluded between the municipality and Ye.G, according whereof the land plot with the surface of 6.06 ha was alienated to Ye.G for the amount of 20 883 972 and the purpose of use of the garden was defined as follows—construction of entertainment and recreation area.

 On March 2, 2004, a land plot lease contract was concluded between the authorized person of Ye.G and Sunny Land Joint Venture Co.Ltd. (35% of the shares belonged to the same Ye.G) pursuant to which the abovementioned area was transferred to that company for the purpose of creating an entertainment and recreation area and an agreement on dissolution of the lease contract was concluded between the parties on  May 2, 2006. Afterwards, based on the application of Ye.G a division of a property was carried out and it was divided into the land plots with the surface of 3.5023 ha and 2.5577 ha, after which on May 15, 2006 Ye.G provided the land plot with the surface of 3.0523 ha for gratuitous use for the term of 20 years to Sunny Land Joint Venture Co.Ltd. (The contract on gratuitous use of immovable property was concluded).

On December 4, 2007 Ye.G and Moscow investment construction company Yerevan Co.Ltd concluded a sale and purchase agreement of immovable property in installments pursuant whereof Ye.G. sold the land plot with the surface of 2.5577 ha to the abovementioned company and the defined price was AMD 697 727 272 (a price incomparably higher than the price with which he bought it) and on December 6, 2007 the relevant point of the contract was amended and it was defined that the sale price of the immovable property should be AMD 767 500 000 by the consent of the parties.

On March 20, 2019 a sale and purchase and loan agreement of the immovable property was concluded between Ye.G (as a seller) and N&S Construction LLC (as a buyer) according whereof the land plot with the surface of 1.5023 ha located at 22 Yeghvard highway and the land plot with the surface of 2 ha located at 22 Yerevan-Yeghvard Highway, Davtashen were transferred to the Buyer. The price of the first land plot amounted to AMD 887 722 000 and the price of the second land plot amounted to AMD 1 295 424 000.

During the investigation carried out in the Prosecutor’s office of the city of Yerevan the relevant urban planning documents valid at the time of alienation were studied.  It was found out that the abovementioned land plots were green zones of public significance (Pursuant to Article 60 of the Land Code of the Republic of Armenia “Pursuant to Article 60 of the Land Code of the Republic of Armenia The transfer of land plots, falling under the ownership of the State and communities, to citizens and legal persons under the right of ownership shall be prohibited, where they  (…)constitute lands of common use in residential areas (squares, streets, roads, river banks, boulevards, parks, gardens, beaches and other territories of common use) (…)”.

Due to the abovementioned actions, a property damage in the amount of AMD 2 929 762 028 (according to the preliminary calculations) was caused to the state.  

Taking into consideration the fact that apparent abuse by the employees of the Yerevan Municipality was found out during the investigation, on April 3, 2023 the prosecutor submitted a report on the apparent abuse to the Anti-Corruption Committee of the Republic of Armenia. 

On April 14, 2023 a criminal proceedings under Point 2 of Part 2 of the Article 441 of the Criminal Code of the Republic of Armenia (abuse of official powers or abuse of the influence conditioned thereby or exceeding the powers, which caused a property damage in particularly large amounts) was initiated by the Anti-Corruption Committee

 Notice:  A person charged with any crime shall be presumed innocent until proved guilty in the manner prescribed by the RA Criminal Procedure Code—by the judgment came into legal force.