Ministry of Justice Presents Draft Law on Regulating Shared-Equity Construction in Uzbekistan

Tashkent, Uzbekistan (UzDaily.com) — The Ministry of Justice of Uzbekistan has presented a draft law titled “On the Construction of Apartment Buildings and Other Real Estate Objects Based on Share Contributions”, aimed at regulating relations in the shared-equity construction sector.

The draft proposes adding a new Article 188−2 to the Criminal Code of Uzbekistan, establishing liability for violations of legislation regarding participation in the construction of apartment buildings and other real estate through shared contributions.

Under the draft, raising capital for construction in ways not provided by law, as well as failing to timely register a participation agreement in the state real estate rights registry, will result in a fine of 300–400 sizes of basic estimated values (BEVs) (123.6–164.8 million soums), restriction of freedom, or imprisonment for 1–3 years.

For repeated violations committed by a group of persons, by prior agreement, or causing significant damage, penalties increase to a fine of 400–600 BEVs (164.8–247.2 million soums), restriction or imprisonment for 3–5 years, and deprivation of certain rights. Actions causing especially large damage or committed in the interest of a group may result in 5–7 years of imprisonment. First-time violators who compensate the damage within 30 days of detection are exempt from criminal liability.

The draft also proposes adding Article 99−1 to the Code of Administrative Liability, holding authorized organizations in shared-equity construction accountable for failure to disclose information.

Specifically, officials who do not upload information to the Unified Information System for Housing Construction face a fine of 70 BEVs (28.84 million soums), and for making illegal changes to project documentation of shared-equity construction, a fine of 100 BEVs (41.2 million soums) applies.

The initiative aims to increase transparency in shared-equity construction, protect participants’ rights, and ensure legality in attracting investments to the housing sector.