Search

State Duma of the Russian Federation calls to take out the fraudulent scheme of using escrow accounts

The State Duma urged to pay attention to fraudulent actions that developers can resort to. The question concerns the use of escrow accounts, undervaluation of real estate, as well as its sale to the affiliates. Members of the State Duma Committee on Construction and Housing and Public Utilities drew attention to the problem. The MPs called on the Prosecutor General's Office ...

THE COLLATERAL CREDITORS WERE DEFENDED IN THE CONSTITUTIONAL COURT

The Supreme Court (SC) filed a complaint with the Constitutional Court, considering lawsuits involving collateral creditors. The dispute arose due to the adoption of the law (151-FZ), which introduced escrow accounts in the construction sector. Prior to that, the bankruptcy legislation assumed that if the developer was declared insolvent, the objects of construction in progress could be transferred to a regional fund protecting the rights of shareholders....

91 real estate developers went bankrupt in Russia over the first five months of 2021

... According to the CEO of RACC, Fyodor Vylomov, such data testify to the industry problems observed last year. Many developers have still managed to attract money from equity investors using a scheme that was in effect before the mandatory introduction of escrow accounts. Moreover, firms that filed for bankruptcy account for a little more than 1% in the total volume of housing being built in Russia by the beginning of the summer of 2021. According to experts, there are many reasons for the bankruptcy of ...

Sorted by relevance | Sort by date