25.08.2020 | The property of the debtor recognized bankrupt by the bankruptcy manager was alienated on obviously unprofitable terms. A criminal case has been initiated

The RA Prosecutor's Office informed that bankruptcy procedures are often accompanied with criminal mechanisms with the participation of bankruptcy managers, calling natural and legal entities to make the data related immediately available in case of serious violations of law, criminal actions, possible illegal actions of bankruptcy managers or other law enforcement agencies.


The circumstances presented by the debtor to the RA Prosecutor’s Office on bankruptcy were studied in the Department of State Interests Protection of the RA General Prosecutor’s Office. Necessary documents and data were required and received from the Committee of the Real Estate Cadastre of the Republic of Armenia and the bankruptcy manager of the case in order to ensure the comprehensiveness of the study.


In the result factual data was received that the General Jurisdiction Court of the First Instance of Armavir Region uphold the application of the RA SRC by its decision of January 11, 2017 and recognized “Jrhan” CJSC bankrupt.


The market value of the land foreseen for industrial, entrails and other industrial use with 2,88566ha belonging to that company situated on street M. Mashtots, Geghakert community of Armavir Region and with industrial use of land with 3939.51 sq. m. estimated 50.400.000 AMD, which was alienated with 6.808.645 AMD on 22 October 2019. There were also illegal lands with 365.5 sq. m. area in the certificate of real estate registration, which were not evaluated but were transferred to the buyer together with the mentioned estates.


According to Article 47, Point 3 of the RA Law on Bankruptcy. “Disposition of property belonging to the debtor after the decision of liquidation is carried out by the manager”.


Meanwhile, as a result of the registration, the value of the property and demand would significantly increase.


That is to say, the manager of bankruptcy, having the function of property management, has not registered the property with 365,5 sq. m. of illegal buildings on 10% of the property owned by the debtor, in the result has alienated it to the trustee with obviously unprofitable terms causing 5.400.000 AMD damage to the state. Meanwhile in the result of the registration the value and the demand of the property would be significantly higher.   


Besides the alienated property also included a deep well with 90 meters depth, with 219 mm pipes and filters, not included in the act of registry, was not estimated, significantly reducing the value of the property.


Taking into account that data was obtained on illegal criminal acts of bankruptcy, in particular, alienation of property on obviously unprofitable terms, a criminal case was initiated in the Department of State Interests Protection of the RA Prosecutor General's Office under Article 192, Part 1 of the RA Criminal Code.


The criminal case was sent to the RA Investigative Committee for investigation.


Notice: Every person suspected in or charged with a criminal offense shall be presumed innocent unless proved guilty in the manner prescribed by the RA Criminal Procedure Code and unless the verdict comes into legal force.