The Mykolaiv Region Prosecutor's Office forced the developers to pay more than UAH 20 million in equity participation through the court. Construction companies often replaced cash payments with material assets or entered into unfavorable investment agreements.
This was reported by the press service of the Prosecutor General's Office.
The Prosecutor's Office of Mykolaiv region continues to seek payment by developers of equity participation in the development of local infrastructure. As a result, more than UAH 8 million has already been returned to community budgets.
In particular, prosecutors are challenging in court attempts by developers to avoid paying the mandatory contributions they were obliged to make before the abolition of equity participation in 2020. Construction companies often tried to replace cash payments with in-kind contributions or entered into investment agreements on unfavorable terms. However, according to the law, since 2008, equity participation can only be paid in cash.
According to the press service, in recent years, the prosecutor' s office has filed 14 lawsuits totaling almost UAH 24 million. As of today, 13 of them have already been satisfied - in the amount of more than 20 million, of which more than 8 million actually went to local budgets.
In Mykolaiv, prosecutors have succeeded in recovering funds from developers of residential complexes, offices and shopping centers. In Pivdenoukrainsk, the court invalidated one of the contracts, the amount of which was six times less than the legal limit, and ordered to recover UAH 1.1 million to the budget.
The prosecutor's office also responds to cases where developers try to avoid enforcement of court decisions. For example, after one of them was declared insolvent, the prosecutor's office initiated the seizure of its property and filed an appeal against the settlement agreement. As a result, UAH 2.5 million was returned to the budget, as well as the court fee.
Despite their large profits, Mykolaiv developers continue to evade paying their share contributions, leaving the city's infrastructure without the necessary funds. Government officials with ties to the construction industry exploit loopholes in the legislation, and even court cases won do not always ensure that money is returned to the budget.
