MOSCOW, June 2 - RAPSI, Alyona Yegorova. The Moscow Commercial Court has dismissed the Inteco development company’s lawsuit against the Moscow authorities to recover 129.8 million rubles ($4.641 million) in damages, the court told the Russian Legal Information Agency.
Inteco is owned by Yelena Baturina, the wife of former Moscow mayor Yury Luzhkov.
An Iteco source told RIA Novosti that the company sought to recover the cost of designing a kindergarten and performing turn-key construction as part of the Arco di Sole residential complex in Moscow.
The kindergarten was constructed under an investment contract between Inteco and the Moscow government, the source said. The investor executed its obligations in full, he added.
In response, the Moscow government told RIA Novosi that the final report on the contract’s implementation was not signed and the plaintiff’s claims were consequently premature. Moreover, the contract was implemented only partially, the lawyer added. Inteco built the kindergarten, he said, but failed to complete the residential buildings as stipulated in the contract.
Meanwhile, the plaintiff countered that the buildings were fully constructed and opened, and a report was signed by Inteco and forwarded to the Moscow government. However, the Moscow authorities refused to sign the document for over a year, the company said.
The court is also considering another Inteco claim against the Moscow government to recover 161.113 million rubles ($5.760 million).
Baturina is looking to recover the expenses caused by the termination of an investment contract to design and develop residential area in Moscow, RIA Novosti reported earlier.
The source said the filing of such suits is necessitated by current practice, as a court decision is needed to have the costs compensated.
Inteco is a diversified company and a major player on Russia’s development market.