Charges Filed Against 4 Individuals in ‘Ajapnyak’ Universal Market Acquisition Fraud Case

The Investigative Committee of Armenia's Special Investigative Department has filed charges against four individuals following an extensive investigation into a case of abuse of power and property damage involving officials from the Yerevan Municipality and Tigran Sahakyan, the son of former MP Galust Sahakyan.

According to the evidence gathered during the investigation, in 2003, the Minister of State Property Management of Armenia used his official position to sell the building of the ‘Ajapnyak’ universal market located on Abelyan Street in Yerevan for a significantly undervalued price of 22,500,000 AMD to a pre-known buyer, Tigran Sahakyan. After paying this amount, Tigran Sahakyan acquired ownership of the property in question.

Following the acquisition of the property on June 26, 2003, Tigran Sahakyan submitted a request to the Yerevan Municipality for the reconstruction of the universal market, expansion of service areas, organization of parking lots, landscaping, and the establishment of rights to about 3,600 square meters of additional land. Based on this request, on September 11, 2003, a decision was made by the Mayor of Yerevan to grant Tigran Sahakyan the land parcel of 7,470 square meters occupied by the ‘Ajapnyak’ universal market as well as an additional 3,880 square meters of land on a lease basis with preferential purchase rights. Leases were signed on February 10, 2004.

According to regulations established by the Armenian Government in its decision No. 1746-N dated December 24, 2003, Tigran Sahakyan was allowed to acquire leased land at a cadastral value of 51,347,400 AMD, not the previously indicated value of 16,623,437 AMD.

Subsequently, Tigran Sahakyan, intending to acquire the land at the previous lower prices, presented fabricated evidence when filing a court request through his representative, demanding the Yerevan Municipality sell him the land at historical cadastral values. In his court submission, T. Sahakyan provided forged documents, claiming them to be original contracts signed on February 10, 2004, instead of the actual agreements from February 10, 2003.

Despite being obliged by law to defend the municipality's interests in court, the Deputy Head of the Legal Department of the Yerevan Municipality, acting contrary to the interests of the service, failed to object to the false factual basis in court. Instead, he, along with a specialist from the same department, left the assessment and substantive resolution of the issue to the discretion of the court, resulting in a judgment favoring Tigran Sahakyan based on clearly false facts.

Furthermore, the head of the same department neglected to appeal the court's decision of April 9, 2004, which was based on these same false facts, thereby securing favorable outcomes for his associate, Tigran Sahakyan.

Consequently, the state suffered particularly large property damage amounting to 34,723,963 AMD, as the state was only paid 16,623,437 AMD instead of the required value of 51,347,400 AMD.

Based on the collection of sufficient evidence, Tigran Sahakyan has been charged under Article 184 (causing property damage by deception or abuse of trust) and Article 349 (forging evidence) of Armenia's Criminal Code. The Head of the Legal Department and his Deputy have been charged under Article 308 (abuse of official powers), while an employee of the same department faces charges under Article 38-308 of the Criminal Code. All individuals involved have been given a travel ban as a measure of restraint.

The preliminary investigation has been completed, and the criminal case has been sent to court with an accusatory conclusion.