The process of alienation of the property located at 10 Abovyan Str. was examined in the Prosecutor’s Office of Kentron and Nork Marash Administrative districts of the city of Yerevan in the scope of its power to file a claim on the protection of state interests.

 It was found out by the examination that by the Decision of the Government dated April 5, 2007, the building with the surface of 1250 square meters and the garage with the surface of 56 square meters located at 10 Abovyan Str. of the city of Yerevan was taken back from the Institute of Geological Sciences NGO of the National Academy of Sciences and alienated to Local Developers LLC through direct sale. AMD 166 million 318 thousand was defined as the initial price of the property.

On May 23, 2007 a contract on the alienation and pledge of the state property was concluded between local Developers LLC and K. K. Head of the State Property Management Department, pursuant whereof the buyer was obliged to invest AMD 150 million for the purpose of reconstructing and repairing the building within 2 years after the contract enters into force.

Head of the State Property Management Department sent a letter to the Director of Local Developers LLC in 2008 and 2009 requiring to submit the documents confirming the investment of AMD 150 million, however he didn’t receive an answer.

 On July 7, 2010, K.K. Head of the State Property Management Department sent a letter to the Head of the State Committee of the Real Estate Cadaster informing him on the necessity of terminating the pledge right with regard to the immovable property located at 10 Abovyan Str., mentioning that  Local Developers LLC failed to fulfill its obligations.

On July 16, 2010, in response to the letter of K.K. Head of the State Property Management Department, the Head of the State Committee of the Real Estate Cadaster answered that the fact of recognized overriding public interest over the property is not a ground for termination of the pledge right, thus it is not possible to terminate the state registration of mortgage over the property located at 10 Abovyan Str. 

On August 18, 2010 the Director of Local Developers LLC sent a letter to the Head of the State Property Management Department adjacent to the Government requiring to remove the pledge over the property, mentioning that the Company implemented the investment project within defined time limits, submitting relevant documents.

During the examination, the Prosecutor’s Office also found out that the money spent for the purpose of purchasing goods by the Company in the scope of its business activity (earphones, hairdryer, spoon, broom, ashtray, etc.) were assessed as expenses made for the purpose of restoring and repairing the building located at 10 Abovyan Str. As a result of examination it was also found out that the first construction permit was granted to that building only on August 9, 2016. At the same time there was no completion act.

Taking into consideration that a case of alleged crime was found out during the examination, the prosecutor submitted a report to the Anti-corruption Committee.

On November 14, 2023, a criminal proceedings was initiated in the Anti-corruption Committee under part 2 of article 308 (2 counts) and part 2 of article 315 (2 counts) of the Criminal Code adopted on 18.04.2003.

The Prosecutor General’s Office undertakes measures to return the property constituting an ownership of the community back to the community in the scope of its power to file a claim on the protection of state interests.