Shareholders Remain Uncompensated for Demolished Dwellings in Krasnodar
In the Uspenskoye District of Krasnodar, a new wave of controversy has arisen following the demolition of the apartment complex "Best House" in 2020. The complex, operated by the housing cooperative "Lucky Choice," was marked by repeated deadline extensions and construction that exceeded its intended three-story design, eventually becoming a six-story building.
The demolition of "Best House" was due to building code violations and the lack of necessary permits, a common issue that typically leads to administrative fines, orders to demolish unauthorized parts, and potential civil litigation or criminal cases in Russia. However, the specific legal proceedings for the Lucky Choice housing cooperative and the demolition of "Best House" have been difficult to trace.
The management of the cooperative, Oleg Marmeladze (chairman) and Natalia Mikheeva (deputy), continued to accept payments from shareholders despite knowing the project was unfeasible. In 2020, Marmeladze and Mikheeva were convicted of fraud, but the verdict was overturned, and the case was sent for retrial. In 2022, they were again found guilty of fraud.
The city administration reported the building code violations and lack of permits to "Kommersant-Yug," but the municipality cannot intervene in civil disputes between the cooperative and shareholders. Shareholders of "Best House" have been unable to receive compensation for the demolished complex, and attempts to legalize the self-built structure through the courts have typically failed.
Families affected by the demolition have the option to receive monetary compensation instead of land in Uspenskoye District. The cooperative, "Lucky Choice," lost its right to state support due to the building code violations.
Despite the challenges, proving the municipality's guilt and establishing a causal link to the damage is extremely difficult in practice. For current case-specific legal updates, specialized local legal sources or governmental records would be necessary.
As the situation unfolds, the residents of Uspenskoye District and the broader Krasnodar community continue to grapple with the consequences of the controversial "Best House" apartment complex and the legal battles that follow.
Investors in the Lucky Choice housing cooperative might reconsider future investments in real-estate ventures, given the repeated legal issues and fraud cases associated with the management. The controversy surrounding the demolition of "Best House" has raised questions about the adequacy of business practices in the Krasnodar region's finance sector, potentially impacting public confidence in local business and investing.
