The Government of the Russian Federation has expanded the capabilities of the Fund for the Protection of the Rights of Shareholders by specifying the list of objects to which the mechanisms of protecting the rights of citizens from unscrupulous developers can be applied. This was reported to Izvestia on Thursday, April 22, at the press service of the Foundation for the Protection of Citizens’ Rights.
According to the fund, the government has established criteria that problematic objects must meet in order for the fund to have the opportunity to apply mechanisms to protect the rights of defrauded citizens.
The list includes the following criteria: bankruptcy proceedings have been initiated against the developer; the project documentation for the object has a positive expert opinion; on the site where the object is located, construction is possible; current technical conditions for connecting a house to utility networks, as well as the degree of construction readiness – not less than 50%.
In addition, the regional budget should have funds to co-finance the construction, and an unfinished house and land plot cannot be seized.
“Consideration of objects that simultaneously meet these conditions at the Fund’s supervisory board is possible if the developer does not have rights to a land plot, a building permit, and also if the developer was not a legal entity,” the Fund for the Protection of Citizens’ Rights clarified.
Thus, if all the above conditions are met, the fund will be able to finance measures to protect the rights of defrauded equity holders. All conditions must be met at the same time.
Earlier, on April 12, the Russian government expanded the capabilities of the Fund for the Protection of the Rights of Shareholders to complete the construction of problem houses and pay compensation to defrauded citizens. In March, Russian President Vladimir Putin set a task for the Prosecutor General’s Office to protect and restore the rights of defrauded equity holders, as well as to control the situation with long-term construction projects.