OREANDA-NEWS. February 03, 2012. The Federal Arbitration Court of the Dalnevostochny [Far East] District pronounced legitimacy and reasonableness of a decision made by Primorie Office of the Federal Antimonopoly Service in the Primorie Region (Primorie OFAS Russia) that the Office of Rosimuschestvo [the Federal Agency for State Property Management] in the Primorie Region violated the antimonopoly law, reported the press-centre of FAS Russia.

Earlier Primorie OFAS Russia established that the Office of Rosimuschestvo in the Primorie Region had transferred state property – a bomb-shelter to an economic entity – “Gladis” Ltd. – for reconstruction into car parking without competitive bidding (tenders of auctions). Such actions are in violation of Part 1 Article 17.1 of the Federal Law “On Protection of Competition”.

The Arbitration Court confirmed legitimacy found reasonableness of the decision made by Primorie OFAS Russia.

The Office of Rosimuschestvo in the Primorie Region filed a lawsuit to an Appeal Court challenged the decision of the antimonopoly body. The Appeal Court reversed the judgment of the Arbitration Court.

As Primorie OFAS Russia believed that its position was right, it challenged the verdict at a Cassation Court.

On 25th January 2012, the Federal Arbitration Court of the Dalnevostochny District reversed the ruling of the Appeal Court and upheld the judgment of the Court of First Instance, which confirmed the rightness of the position taken by the antimonopoly body on the case.

“The right of Rosimuschestvo, in the person of its regional offices, to dispose civil defence facilities without competitive bidding by completing transactions for transferring such facilities for storage and for use to commercial organizations and giving them the right to derive revenue from using this property, restricts competition. It infringes the rights of other economic entities for equal and open access to state resources”, pointed out the Head of Primorie OFAS Russia, Viktor Tryakin.

Reference:

Under Part 1 Article 17.1 of the Federal Law “On Protection of Competition”, lease contracts, gratuitous use agreements, trust management contracts, other contracts providing for transferring the rights of possession and (or) use of state or municipal property, not fixed on the basis of economic control rights or operative management, can be concluded only upon the results of tenders or auctions for the right to conclude such contracts.