OREANDA-NEWS. November 16, 2010. The First Arbitration Appeal Court in Vladimir supported the position of the Office of the Federal Antimonopoly Service (OFAS Russia) in the Republic of Chuvashia and the Court of First Instance that the procedures for leasing (subleasing) municipal property in Cheboksary violated the civil and antimonopoly law, reported the press-centre of FAS Russia.

On 26th February 2010, Chuvashia OFAS Russia initiated a case against Cheboksary City Assembly that had approved the Regulations on the procedures for leasing non-residential municipal property in Cheboksary. The case was based on petitions filed by sub-lessees of the “Zvyozdny” and “Sdelai Sam” stores. Investigating the case, the Commission of the antimonopoly body established that in accordance with the Regulations, along with the leasing fee, the companies were unreasonably charged the fee for the leasehold right (or the subleasing right). Also the leasing fee was determined independently rather than on the basis of the law on appraisal practice.

On 19th April 2010, Chuvashia OFAS Russia found that Cheboksary City Assembly violated Clause 2 Part 1 Article 15 of the Federal Law “On Protection of Competition” and issued a determination to adjust the Regulations in line with the existing legislation.

On 9th August 2010, the Arbitration Court of the Republic of Chuvashia examined the case materials and upheld the decision and determination issued by the antimonopoly body.

Vyacheslav Borisov, the Head of Chuvashia OFAS Russia, emphasized special significance of the ruling passed by the Appeal Court: “Unlawful charged of additional monetary funds, lack of transparency in auction organization do not only affect the economic conditions of some entrepreneurs but influence the state of competition in the field of leasing municipal property in Chuvashia capital city”.

Reference:

Clause 2 Part 1 Article 15 of the Federal Law “On Protection of Competition” prohibits the federal executive bodies, the authorities of the constituent territories of the Russian Federation, local self-government bodies, other bodies and organizations exercising the functions of the above bodies, as well as state extra-budgetary funds and the Central Bank of the Russian Federation to adopt acts and (or) exercise actions (omissions) that lead or can lead to preventing, restricting or eliminating competition, except cases for adopting act and (or) exercising such actions provided for in the federal laws, in particular: it is prohibited to unreasonably prevent economic activities of market participant.

In the first six months of 2010 FAS Russia and its regional offices initiated 1728 (Article 15 of No.135-FZ Federal Law “On Protection of Competition” of 26th July 2006). Based on its inspections’ findings, FAS has issued 1196 determinations to stop the antimonopoly violations.