PUBLIC DOMAIN FOR PRIVATE GAIN? "TEGHUT, CJSC" GETS LAND CHEAP
Arman Gharibyan

2010/ 02/22 | 16:14

Vardanyan Family in Lori Cries Foul; Seek Redress in European Court

Vardan Vardanyan, a resident of the village of Shnogh, Lori Marz,
has applied to the European Court of Human Rights. He is seeking
financial and moral compensation for loses he claims the family has
suffered after land was taken from them.

The land in question was the only source of income for the family
of five.

In 2007, an 81.5 hectare parcel of land located in the communities
of Shnogh and Teghut was designated in the public domain. The land
was allocated to the Armenian Copper Programme (ACP), CJSC, a firm
that operates a mining concern in Teghut. ACP then registered the
land to Teghut, CJSC.

Teghut, CJSC, then went to the courts, demanding that they be allowed
to buy the arable land owned by the Vardanyan family for state and
public usage. The firm said it would pay appropriate compensation to
the family.

"Teghut" offered the Vardanyan family 163,000 AMD for the .334 hectares
of arable land with an additional payment of 15%.

The price was then upped to 173,000 and the total compensation package
totaled 197,450 AMD. The company also offered 1,092,500 AMD for two
parcels measuring .932 and .723 hectares. This figure was also upped
to 1,133,900 AMD.

Courts uphold land compensation package

On November 7, 2008, the Lori General Court sustained the suit brought
by "Teghut" against the Vardanyan family, finding that the compensation
amounts proposed by the company were of equivalent value to the land
parcels. In other words, one square meter of land was appraised at
an average of 59.2 AMD.

Such an evaluation differed from the 222 AMD per one square meter of
Shnogh land appraisal posted in the property registry on December
29, 2003. Thus, it turns out that the government had been taxing
the Vardanyan family at the rate of 222 AMD per meter but that it
compensated the family at the lower, 59.2, meter rate.

In their petition to the European Court, the Vardanyan family points
out that "Teghut, CJSC" first made a low-ball offer and that the
amount was later increased, by the manipulation of the very same
expert, without explanation.

In the family’s petition, it states, "The argument cited supports the
claim that the land belonging to the applicants was evaluated on an
arbitrary basis."

Before taking their case to the European Court, the Vardanyan’s went
to the Appeals Court, which left the lower court ruling intact. The
family then sought redress at the Court of Cassation which rejected
the case arguing that it "lacked merit".

Vardanyan’s argue land appraisal was flawed

The Vardanyan family argues that Oliver Group, Ltd. incorrectly
appraised their land and didn’t take into account that they raised
various income-generating livestock on the plants grown on the land.

The family says that with the compensation they received that can’t
even purchase an equal amount of land today.

The Vardanyan family hasn’t been able to get an alternative appraisal
conducted. It appears that such firms have shied away from taking
the job due to government pressure.

"Teghut, CJSC" also purchased a .024 hectare parcel of land from the
Shahnazaryan family in Shnogh for 266,760 AMD. The company has thus
paid more for a smaller parcel.

Another glaring flaw in the Vardanyan land deal is that the ten walnut
trees on their land were never appraised for compensation. The family
claims that the yearly walnut harvest from the ten trees amounts to
800 kilos with a market price of 2 million AMD.

Land seizure never intended for "public good"

In their petition to the European Court, the Vardanyan’s point out
that the land seizure and inadequate compensation package violates
Protocol 1, Article 1 of the European Convention of Human Rights
dealing with property and that the property was seized not for the
public good but for the personal gain of another entity.

The Vardanyan family is preparing a list of compensatory damages that
it will present to the European Court once its initial petition for
a hearing has been accepted.

Karen Tumanyan, the family’s lawyer, informed Hetq that they will
seek compensation in line with what other land owners were paid.

Mr. Tumanyan also said that there are seven other families in Shnogh
and Teghut that have sent similar petitions to the European Court
"Right now, we’re preparing their appeals to the court as well,"
he said.