Tashkent, Uzbekistan (UzDaily.com) – About 40.0 hectares of land on the territory of the Sarikanly farm in Bostanlyk district of Tashkent region were transferred to Mega Building Business LLC for $30.0 million.

The company should construct a hotel, a cottage town, a canteen and a shopping center, as well as the construction and commissioning of a pre-school institution for 140 children.

The land plot was allocated in accordance with the act of the Administrative Council of free economic zones and small industrial zones from 19 March 2019 by the decision of the khokim of Bostanlyk district from 3  April 3, 2019 No. 2010.

It is reported that until now Mega Building Business LLC has not fulfilled the above investment obligations. Thus, the failure to fulfill the obligations of Mega Building Business LLC to the directorate of the tourist and recreational zone "Charvak" of investment obligations entails the loss of the status of a participant in the TRZ "Charvak", the abolition of tax and customs benefits, the full collection of unpaid taxes and customs duties and the implementation of the investment project repeatedly warned in writing that the right to use the land plot provided to the legal entity would be cancelled.

In this regard, taking into account the fact that Mega Building Business LLC was slow to respond to warnings and had not yet begun construction work on the allocated land, the Directorate of the Charvak TRZ issued an appropriate act in accordance with the Law of the Republic of Uzbekistan “On special economic zones. The issue of withdrawing Mega Building Business LLC from the Charvak tourist and recreational zone and returning the allocated land to the state reserve is included in the agenda of the next meeting of the Administrative Council of the Charvak tourist and recreational zone.

On 14 December 2021, the prosecutor's office of Tashkent region filed a protest with the administration of Tashkent region to cancel the decision of the khokim of Bostanlyk district.

In addition, on 15 April 2022, the Prosecutor General’s Office, the Department for the Prevention of Theft of Land Resources of the Ministry of Internal Affairs and employees of the Tashkent regional branch of the Department, in joint operational action, arrested officials of Mega Building Business LLC while trying to sell land plots for US$3 million allocated for investment, at the time of receipt of US$180,000, as an advance.

A criminal case under articles 168 (fraud) and 28, 211 (bribe) was initiated by the Tashkent regional department of the Internal Affairs Directorate, an investigation is underway.