E.Z., holding the position of Yerevan Mayor from July 1, 2003 to March 4, 2009, without any legal grounds made a decision to alienate the 31,780 sq. m. land parcel belonging to the state-owned “Youth Palace” SCJC, located at 1 Saralanj Street to “Avangard Motors” LLC.

In particular, on January 13, 2004, the real estate with an area of 24,345.2 sq. m., located at 1 Saralanj street, was sold by the bankruptcy manager of “Youth Palace” SCJC to “Avangard Motors” LLC. The contract price was determined as 506 million AMD by the mutual agreement of the parties. Out of 506 million AMD, 90 million AMD were planned to be provided to 24 refugee families living in the above-mentioned building as compensation for providing a territory. Later, on July 13, 2004, the amount of the said compensation was changed to 95 million AMD as compensation for providing a territory to 30 refugee families.

Clause 7 of the contract stipulated that ownership of real estate would be considered transferred to the customer from the moment the contract was state registered (the contract was state registered on January 27, 2004).

On January 16, 2004 — three days before the Government’s  new decision No. 1746-N. dated December 24, 2003 entered into force (according to the decision that came into force on January 19, 2004, the cadastral value of the above-mentioned land parcel became 805 million 623 thousand AMD instead of 62 million 973 thousand 405 AMD), in the absence of state registration of the contract, transferring the ownership of the real estate to the customer and other rights arising from it, including the fact of not arising the priority right to purchase the property, without appropriate legal grounds, E.Z., adopted Decision No 35-A “On alienating the land occupied by the buildings belonging to “Avangard Motors” LLC”. Under that decision, E.Z. reserved to “Avangard Motors” LLC the priority right to purchase the land parcel with an area of 31,780 sq. m., located at the above-mentioned address, setting the sale price in the amount of the current cadastral value in the given period.

Then, based on the Yerevan Mayor's Decision No 35-A, dated January 16, 2004, on January 17, 2004, a contract on the direct sale of the land parcel was signed between K.D., Head of the Real Estate Management Department of the Yerevan Municipality, and L.A., Director of “Avangard Motors” LLC. According to the contract, the 31,780 sq. m. land parcel, located at 1 Saralanj Street was sold to “Avangard Motors” LL for 62 million 973 thousand 405 AMD.

Thus, E.Z., the former Mayor of Yerevan, based on his personal interest, violating a number of legislative requirements, alienated the land parcel with a cadastral value of 805 million 623 thousand AMD for 62 million 973 thousand 405 AMD to “Avangard Motors” LLC, causing the Yerevan community property damage in a particularly large amount.

By the Prosecutor’s decision, dated August 30, 2023, public criminal prosecution was initiated against E.Z. under Article 308(2)/abuse of official powers, which caused grave consequences by negligence/ of the RA Criminal Code, adopted 18.04.2003.  

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.