Uzbekistan to Toughen Penalties for Illegal Construction

Tashkent, Uzbekistan (UzDaily.uz) — The Legislative Chamber of the Oliy Majlis passed in the first reading on 11 August 2026 a bill to tighten penalties for illegal construction. A total of 88 deputies voted in favor of the document, while 15 voted against, according to the press service of the lower house of parliament.

The draft bill provides for financial sanctions on legal entities for gross violations of urban planning requirements. Specifically, liability is proposed for illegal construction, carrying out construction and assembly work in violation of general plans, master plans, and project documentation, as well as constructing facilities exceeding established parameters without notifying the authorized body.

Sanctions may also apply to the construction, reconstruction, or major repair of facilities that do not correspond to the functional purpose of the land plot, as well as for providing false information.

In such cases, a financial sanction of five base calculating amounts is proposed for customers, contractors, and, if necessary, subcontractors for each square meter of the total volume of construction completed at the time the violation is identified. From 1 September 2026, the sanction amount will equal 2.2 million soums per square meter.

Payment of the financial sanction will not legalize the unauthorized facility. The violator will be required to bring the construction into compliance with urban planning documentation and legislation.

According to deputy Nozimbek Rustambekov, about 8,000 violations of urban planning legislation were identified in Uzbekistan in 2023, and nearly 9,000 in 2024. In 2025, administrative fines were applied in 2,653 cases, while violations at another 2,350 facilities were eliminated through demolition.

The authors of the bill believe that existing liability measures do not always create a sufficient economic barrier for violators. Issues cited include construction contrary to approved documentation, land use for unintended purposes, commencing work without required documents or notifying authorized bodies, and artificially delaying project implementation.

However, several deputies expressed concern over the proposed mechanism. Adolat party deputy Zuhriddin Mavlonov noted that existing legislation already provides administrative fines for violating urban planning rules, equal to 70 base calculating amounts for a first offense and 150 for a repeated violation.

Mavlonov cited as an example a 500-square-meter facility, where a sanction of five base calculating amounts per square meter would total 1.1 billion soums. He stated that such a mechanism might not align with the principle of proportionality.

Questions were also raised regarding the collection procedure. Mavlonov noted the possibility of enforcement through tax authorities via uncontested deduction without a prior court ruling. A representative of the National Committee for Urbanization and Sustainable Development of the Housing Market stated that entrepreneurs would retain the right to appeal decisions in administrative courts.

Speaker of the Legislative Chamber Nuriddin Ismoilov also drew attention to the potential scale of the sanctions, noting that for a nine-story residential building, the amount could reach approximately 12 billion soums. He called on the developers to further examine the consequences of the proposed mechanism for construction companies.

Anvarkhon Temirov, a deputy from the People's Democratic Party, warned that additional financial sanctions could increase the burden on entrepreneurs and ultimately lead to higher housing costs.

During the discussion, deputies also raised the issue of protecting citizens who invest funds in ongoing construction projects. Ekaterina Smesova proposed creating a single open resource where buyers could verify whether developers hold the necessary documents.

Deputy Minister of Construction and Housing and Communal Services Davronjon Adilov reported that an escrow system is being introduced under a recently approved bill protecting equity construction participants. A separate platform is also planned to verify documents and permits for construction projects.

A representative of the National Committee for Urbanization stated that necessary procedures, including an anti-corruption assessment, are planned to be completed ahead of the second reading. The distribution of proceeds from the financial sanctions will also be given further consideration.

The bill is expected to be finalized taking into account the deputies' comments prior to its second reading.