OREANDA-NEWS. May 03, 2011. The Federal Antimonopoly Service (FAS Russia) found that the Property Department of the City of Moscow violated the antimonopoly law when leasing state property, reported the press-centre of FAS Russia.

The Property Department of the City of Moscow violated the law because it concluded some contracts that provided for transfer of the rights of possession and use of state property, without organising competitive bidding, although this requirement is established by the antimonopoly law.

Investigating complaints, FAS established that some lease contracts were lawfully prolonged without competitive bidding because the leaseholders were small and medium-sized business entities and the contracts were concluded in view of Article 53 of the Law of Competition (concluding contracts with small and medium-sized business entities for leasing state property for a new period).

Currently FAS Russia has considered over five cases on violating the antimonopoly law by the Property Department of the City of Moscow when transferring the rights of possession and (or) use of state property. The number of interested persons has exceeded a hundred. Case investigations are ongoing.

Reference:

The Property Department of the City of Moscow is a functional executive body of the City of Moscow that exercises ownership powers for management and disposition of property of the city of Moscow.

One of the main powers of the Property Department of the City of Moscow is, in particular:

- transferring property of the city of Moscow to leasehold, agreeing to pledge it, sub-lease, gratis use or otherwise disposing of this property (Clause 2.2.8 of the Regulations on the Property Department of the City of Moscow, approved by No.255-PP of the Moscow Government of 1st April 2008).