The preliminary investigation carried out by RA Anti-Corruption Committee under the criminal proceedings, justified that E.Z., holding the position of the mayor of Yerevan within the period from July 1, 2003 to March 4, 2009, abused his official powers, without proper legal grounds, made a decision to alienate an area of 31.780 sq.m., located at 1, Saralanj Street, Yerevan, owned by "Youth Palace" state closed joint-stock company and being a state-owned property, to "Avangard Motors" limited liability company at a price many times less than the cadastral value, as a result of which Yerevan community suffered a property damage in a particularly large amount of AMD 742,649,595.
In particular, on January 13, 2004, a property with a total area of 24345.2 square meters belonging to the state-owned Youth Palace CJSC, located at Saralanj 1, was sold to Avangard Motors LLC at AMD 506,000,000 by the bankruptcy manager of the said company. The plot of land with an area of 31.780 sq.m., occupied by the mentioned real estate, was a state property and was not subject to sales and purchase under a contract. At the same time, the same agreement provided that the ownership of the real estate would be deemed transferred to the buyer from the moment of state registration of the agreement in the real estate cadaster.
However, within this period of time, provided that the agreement had not yet received state registration, that is, the ownership of the real estate had not transferred to the buyer, E.Z., on January 16, 2004, made a decision out of personal interests to sell an area of 31.780 sq.m. located at 1 Saralanj Street, to Avangard Motors LLC, without proper legal grounds, according to which he granted the above LLC a beneficial right of preference to purchase the mentioned land area, setting the sale price at the current cadastral value for the given period. Whereas the agreement received the state registration only on January 27 of the same year, when the corresponding decision of RA government came into force, according to which the cadastral value of this land area at that time was already significantly higher – AMD 805,623,000.
As a result, based on the decision of the Mayor of Yerevan, on January 17, 2004, an agreement was signed between the head of the real estate management department of Yerevan Municipality Office K.D. and the manager of Avangard Motors LLC, L.A., for the direct sales of the area, according to which a land plot with an area of 31.780 sq. m. 1, Saralanj street, was alienated to the mentioned company at 62,973,405 AMD.
Thus, as a result of the above-described deliberate actions of the former mayor of Yerevan E.Z., a significant damage was caused to the legitimate interests of the society and the state, namely, the local government body was discredited, the procedure established by law for the management and use of state-owned lands was violated, which negligently entailed grave consequences, namely, a land plot with an area of 31.780 sq.m., which is a state property, being on the balance sheet of Yerevan municipality, with a cadastral value of AMD 805,623,000, was alienated to Avangard Motors LLC at the amount of AMD 62,973,405, as a result of which Yerevan community suffered material damage in particularly large amount of AMD 742,649,595.
E.Z. was charged under Article 308, Part 2 of the former Criminal Code of the Republic of Armenia for the above-mentioned criminal actions, and K.D. was charged under Article 38-308, Part 2.
The preliminary investigation of the criminal proceedings has been completed. The materials of the proceedings with the indictment were handed over to the supervisory prosecutor with a request to approve them and send to the court.
Notification. the person accused of a crime is considered innocent until his guilt is proven in accordance with the procedure established by the RA Criminal Procedure Code by a verdict entered into legal force.
