OREANDA-NEWS. April 25, 2012. The Supreme Arbitration Court of the Russian Federation confirmed legitimacy of the decision issued by the Office of the Federal Antimonopoly Service in Moscow (Moscow OFAS Russia) regarding Moscow City Property Department, reported the press-centre of FAS Russia.

“Gazprovodstroi” OJSC and the Department concluded a leasing contract for real estate. In October 2009, after Article 17.1 of the Federal Law “On Protection of Competition” came into force, the Department, Gazprovodstroi” OJSC and “Sovremenik na Chistykh” Ltd. concluded the contract without organizing a tender. According to the contract the rights for the lease of the above property were transferred from “Gazprovodstroi” OJSC to “Sovremenik na Chistykh” Ltd.

Moscow OFAS Russia established that the leasing rights were transferred with violating Part 1 Article 15 and Part 1 Article 17.1 of the Federal Law “On Protection of Competition”.

“Sovremenik na Chistykh” Ltd. challenged the decision of the antimonopoly body a Court.

The Courts of two instances confirmed legitimacy of conclusions made by Moscow OFAS Russia. However, the Cassation Court supported the claimant.

The Supreme Arbitration Court of the Russian Federation dismissed the ruling of the Federal Arbitration Court of the Moscow District and upheld the rulings of the Court of First Instance and the Appeal Court.

“The ruling of the Supreme Arbitration Court is important for interpreting and applying Article 17.1 of the Federal Law “On Protection of Competition”. It confirms mandatory procedures of competitive bidding for transferring the rights for state property”, pointed out Deputy Head of Moscow OFAS Russia, Elena Klimenko.

Reference:

Under Article 17.1 of the Federal Law “On Protection of Competition”, leasing contracts and other agreements providing for transferring the rights of ownership of use of state property can only be concluded upon the results of tenders of auctions for the right of concluding such contracts.