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Kachkin & Partners won the dispute on 118 thousand square meters plot redemption from St. Petersburg on terms of the client – “Khimvolokno” plant

Contesting the refusal to redeem 118 thousand square meters land plot for industrial purposes to a large Russian manufacturer of synthetic fabrics and fibers, whose interests in court were represented, by Kachkin & Partners resulted with victory in three instances. Property Relations Committee of St. Petersburg refusal was not only deemed unlawful, but the Committee was also compelled by the court to conclude a redemption agreement on the applicant’s terms.

Within the dispute, in addition to the already standard objections to large plots redemption on the “disproportionate” plot area, the Committee used a new argument about the discrepancy between the current type of permitted plot use “for industrial purposes” and the current urban planning zoning, which provides for a residential development zone, as a basis for refusing to buy the site (paragraph 14 of article 39.16 of the Land Code of the Russian Federation). This dispute was the first among several dozen similar ones regarding the Committee’s refusal to buy out plots with reference to the inconsistency of their current type of permitted use with urban planning regulations, and in fact determined the practice in all subsequent cases.

Real Estate and Investments Practice associates guided by Dmitry Nekrestyanov managed to justify the illegality of the Committee’s refusal and its misinterpretation of the provisions of the Land Code of the Russian Federation. This allowed not only to win the dispute on the client’s claim, but also to form practice for cases awaiting this decision at the stage of consideration in the first instance.

In addition Kachkin & Partners experts defended the client’s interests regarding the authorized body’s attempt to violate the law on land pricing in St. Petersburg to demand payment of 100% of the cadastral value if there is a right to a preferential coefficient taking into account the industrial purpose of the territory, which ultimately prevented a 4 times increase in redemption value.

Dmitry Nekrestyanov

PhD in Law
Partner
Head of Real Estate and Investments Practice, attorney

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Dmitry Nekrestyanov

PhD in Law
Partner
Head of Real Estate and Investments Practice, attorney

Download VCARD

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