Head of North Ossetia will distribute land at his own discretion and without bidding
Initiators of a new law explain its necessity by combatting corruption and increasing the investment attractiveness of the region.
The Head of the North Ossetia has been granted new powers. Under the new law, he will provide land plots for rent to legal entities without bidding. When initiating the draft law, the Government of the republic relied on the rules of the Land Code of Russia, according to which in some cases, land lease agreement may be concluded without bidding.
“Agreement of lease of a land plot owned by the state or municipal property is concluded without bidding if the following is provided:
- plot of land to legal entities in accordance with the order of the Russian Government for allocation of socio-cultural facilities as well as implementation of large investment projects, provided the specified facilities of investment projects are in conformity with the criteria set by the Russian Government.
(para. 2 of Art. 39.6 of the Land Code of the Russian Federation)
According to Kommersant, it takes only to declare the annual tax deduction in the amount of at least 5 million rubles and creating at least 100 (for Vladikavkaz) or 50 jobs (for the rest of the territory) to be allotted land under a simplified procedure in the North Ossetia.
The Government reported that new legislation is necessary to protect investment projects. For example, according to the Minister of State Property and Land Relations Ruslan Tedeev, Rostov and Voronezh regional companies often participate in the bidding for allocation of land for individual housing construction; these companies, however, do not intend to develop the territories, asking money to leave the competition and get rid of rivals. “They join tender, raise the bid, and make our investors leave. We report this to law enforcement agencies, but this is difficult to prove,” Tedeev explained.
On the contrary, the Deputy of the regional Parliament, the member of Patriots of Russia Nokh Tokaev insists that allocation of land without bidding leads to corruption. In addition, lawyers note that the draft law uses vague wording, which does not allow to fully evaluate any corruption risks, or risks associated with the violation of the principle of equal access to obtaining land for all individuals.
Previously, 22 thousand hectares of free land had been discovered in North Ossetia as a result of land inventory. Many plots of land are overgrown with trees and shrubs. More than 50 hectares will be transferred to rural settlements for expansion. The inventory began at the end of last year; the most recent inventory in the republic was held in 2010-2011. The Government of the North Ossetia decided to take land from tenants who do not use it for its intended purpose.