The Area of the Youth Palace Sold for 4.4 Billion Drams Less Than Market Value

The land belonging to the former "Youth Palace" located at 1 Saralanj Street has been sold for approximately 4.4 billion drams less than its market value. A criminal case has been initiated regarding this matter, as reported by the press service of the Republic of Armenia's Prosecutor's Office.

On January 16, 2004, officials from the Yerevan City Hall, abusing their official positions, sold the aforementioned land plot with a total area of 31,780 square meters for 62,973,405 drams. However, it was discovered that its cadastral value was 805,623,000 drams, while its approximate market value was 4,430,926,500 drams.

In 2004, the Mayor of Yerevan (Yervand Zakharyan) violated several laws by transferring the land to "Avangard Motors" LLC, causing significant damage to the state.

Additionally, for expansion purposes, "Avangard Motors" LLC acquired land plots of 53.0 square meters and 4,854.86 square meters at the same address through direct sale at cadastral value in 2011.

However, according to a letter from the chief architect of Yerevan’s Department of Architecture and Urban Development in 2005, the 53.0 square meter plot was included in the list of restrictions set forth by Article 60 of the Land Code and was not subject to alienation.

Given that the investigation revealed apparent crimes committed by officials of the Yerevan City Hall, a notary, and other individuals, on April 20, 2023, the prosecutor submitted a report of the alleged crime to the Anti-Corruption Committee.

A criminal case has been initiated at the Anti-Corruption Committee under features of Article 308 Part 2 (abuse of office, causing serious consequences), Article 314 Part 1 (official forgery), and Article 325 Part 2 (forgery and use of documents, seals, stamps, forms, registration plates for vehicles).

The Prosecutor's Office has filed a lawsuit in the Administrative Court.