Onur was unable to sue for the construction of a congress hall in Lviv

June 20, 2022 by No Comments

The Lviv Regional Prosecutor’s Office has won a cassation case over the transfer of a plot of land near Lviv Airport to Synergy Alliance LLC for the construction of a huge congress hall. This communal part of the company was allocated by the Lviv City Council to pay off debts for street repairs before Euro 2012, but the prosecutor’s office considers the transfer of land illegal and has appealed to the court.

This is a 4.8-hectare site located near the Danylo Halytsky Lviv International Airport. With this section, the Lviv City Council planned to repay 103.6 million hryvnias of debt to Onur LLC for the repair of a number of Lviv streets for the Euro-2012 football championship.

To this end, in September 2019, deputies of the Lviv City Council approved a session to allow the establishment of a joint venture with Onur, Synergy Alliance, to the authorized capital of which they contributed this land. Its value was estimated at UAH 105.9 million.

Synergy Alliance LLC planned to build a multifunctional complex with conference halls, exhibition centers, hotels, offices and a parking lot on this site. According to preliminary estimates, the project cost $ 70 million.

However, the Lviv Regional Prosecutor’s Office believes that the land of the private company was allocated illegally, as the communal land had to be either leased or sold at auction. On January 25, 2021, the Commercial Court of the Lviv Region decided to return the plot to communal ownership. The Lviv City Council appealed this decision to the Western Commercial Court of Appeal.

In turn, the prosecutor’s office appealed to the Supreme Court, and on May 31, the Commercial Court of Cassation ruled that the Lviv City Council had illegally contributed to the company’s share capital. Thus, the Court of Cassation upheld the decision of the Commercial Court and quashed the decision of the Western Commercial Court of Appeal.

The City Council and Synergy Alliance have to pay UAH 6,300 in court costs each. The decision of the Supreme Court is final and cannot be appealed.

As ZAXID.NET was told by Danylo Antoshchak, a spokesman for the Lviv Regional Prosecutor’s Office, the prosecutor’s office expects to receive the text of the court ruling, which has already entered into force, after which it will apply to the City Council for enforcement.

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