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Public Domain For Private Gain? "Teghut, CJSC" Gets Land Cheap

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  • Public Domain For Private Gain? "Teghut, CJSC" Gets Land Cheap

    PUBLIC DOMAIN FOR PRIVATE GAIN? "TEGHUT, CJSC" GETS LAND CHEAP
    Arman Gharibyan

    http://hetq.am/en/court/shnogh-2/
    2010/ 02/22 | 16:14

    Vardanyan Family in Lori Cries Foul; Seek Redress in European Court

    Vardan Vardanyan, a resident of the village of Shnogh, Lori Marz,
    has applied to the European Court of Human Rights. He is seeking
    financial and moral compensation for loses he claims the family has
    suffered after land was taken from them.

    The land in question was the only source of income for the family
    of five.

    In 2007, an 81.5 hectare parcel of land located in the communities
    of Shnogh and Teghut was designated in the public domain. The land
    was allocated to the Armenian Copper Programme (ACP), CJSC, a firm
    that operates a mining concern in Teghut. ACP then registered the
    land to Teghut, CJSC.

    Teghut, CJSC, then went to the courts, demanding that they be allowed
    to buy the arable land owned by the Vardanyan family for state and
    public usage. The firm said it would pay appropriate compensation to
    the family.

    "Teghut" offered the Vardanyan family 163,000 AMD for the .334 hectares
    of arable land with an additional payment of 15%.

    The price was then upped to 173,000 and the total compensation package
    totaled 197,450 AMD. The company also offered 1,092,500 AMD for two
    parcels measuring .932 and .723 hectares. This figure was also upped
    to 1,133,900 AMD.

    Courts uphold land compensation package

    On November 7, 2008, the Lori General Court sustained the suit brought
    by "Teghut" against the Vardanyan family, finding that the compensation
    amounts proposed by the company were of equivalent value to the land
    parcels. In other words, one square meter of land was appraised at
    an average of 59.2 AMD.

    Such an evaluation differed from the 222 AMD per one square meter of
    Shnogh land appraisal posted in the property registry on December
    29, 2003. Thus, it turns out that the government had been taxing
    the Vardanyan family at the rate of 222 AMD per meter but that it
    compensated the family at the lower, 59.2, meter rate.

    In their petition to the European Court, the Vardanyan family points
    out that "Teghut, CJSC" first made a low-ball offer and that the
    amount was later increased, by the manipulation of the very same
    expert, without explanation.

    In the family's petition, it states, "The argument cited supports the
    claim that the land belonging to the applicants was evaluated on an
    arbitrary basis."

    Before taking their case to the European Court, the Vardanyan's went
    to the Appeals Court, which left the lower court ruling intact. The
    family then sought redress at the Court of Cassation which rejected
    the case arguing that it "lacked merit".

    Vardanyan's argue land appraisal was flawed

    The Vardanyan family argues that Oliver Group, Ltd. incorrectly
    appraised their land and didn't take into account that they raised
    various income-generating livestock on the plants grown on the land.

    The family says that with the compensation they received that can't
    even purchase an equal amount of land today.

    The Vardanyan family hasn't been able to get an alternative appraisal
    conducted. It appears that such firms have shied away from taking
    the job due to government pressure.

    "Teghut, CJSC" also purchased a .024 hectare parcel of land from the
    Shahnazaryan family in Shnogh for 266,760 AMD. The company has thus
    paid more for a smaller parcel.

    Another glaring flaw in the Vardanyan land deal is that the ten walnut
    trees on their land were never appraised for compensation. The family
    claims that the yearly walnut harvest from the ten trees amounts to
    800 kilos with a market price of 2 million AMD.

    Land seizure never intended for "public good"

    In their petition to the European Court, the Vardanyan's point out
    that the land seizure and inadequate compensation package violates
    Protocol 1, Article 1 of the European Convention of Human Rights
    dealing with property and that the property was seized not for the
    public good but for the personal gain of another entity.

    The Vardanyan family is preparing a list of compensatory damages that
    it will present to the European Court once its initial petition for
    a hearing has been accepted.

    Karen Tumanyan, the family's lawyer, informed Hetq that they will
    seek compensation in line with what other land owners were paid.

    Mr. Tumanyan also said that there are seven other families in Shnogh
    and Teghut that have sent similar petitions to the European Court
    "Right now, we're preparing their appeals to the court as well,"
    he said.
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