In East Kazakhstan, the court fined a number of construction companies for illegally raising funds from equity holders

Approximately a month ago, on the website of the akimat of the region, an appeal appeared to the population to be careful in relation to the PR campaigns of a number of construction LLPs.

As stated in the text, individual companies illegally began to advertise the construction of housing, providing for the attraction of funds from buyers. That is, on the principles of equity participation. Here, on the website, the regional executive power published a list of companies that, by law, do not have rights to use the funds of equity holders.

The other day it became known that four developers were punished just for the illegal attraction of money from equity holders. Court in accordance with Art. 320 of the Code “On Administrative Offenses” fined them 300 monthly calculation indices, or 919 thousand tenge.

According to the regional department of the State Architectural and Construction Control, during inspections based on complaints from the population, it turned out that eight LLPs had begun building housing without even receiving the appropriate permits – an architectural and planning task, an agreed draft design.

“Builders have begun work in the hope of obtaining all permits along the way,” said Inna Akhaeva, head of the department. – However, according to the law, if a violation is detected, they are required to suspend work for at least a month. We now have facts when two companies dug pits and stopped because they are engaged in obtaining expertise. Two LLPs had a sketch that was not agreed upon. They began to build a house, but not the same as it was originally stated in the project. And this is, in fact, a hoax. We have suspended work there until the documentation is in order.

As explained in GASK, the legislation provides for three ways to organize shared construction. Firstly, an entrepreneur can obtain guarantees from a single operator (KZhK JSC). Secondly, to involve a second-tier bank. Thirdly, it can attract money from equity holders, but only after the frame of an apartment building has been erected. At the same time, the developer must still have permission from local executive bodies. In practice, people often give away their money without even checking the documents from the construction company.

“There is an example in Ust-Kamenogorsk when LLP launched a high-profile advertising campaign “Buy an apartment – get a kitchen set as a gift”, but there is no residential building, it has not been built,” said the head of the department. “Moreover, developers include a clause in booking agreements that if the buyer refuses to purchase, he is obliged to … pay a penalty! It is illegal.

The management urged citizens to be most attentive to the procedure for acquiring housing, especially in the case of shared construction.

Often the developer shows only “pictures”, presentations and by all means tries to convince to buy his apartment. Lists the benefits. So, in order not to really become a “tenant” of some kitchen set, it is important to remember that the LLP is obliged to submit such permits as the right to a land plot, an architectural and planning assignment, a draft design, state expertise, a notice of the start of construction – installation works. And, of course, the developer must have permission from the local executive body to raise funds from equity holders, plus the guarantee of a single operator.

Source: https://kazpravda.kz/n/v-vostochnom-kazahstane-sud-oshtrafoval-ryad-stroitelnyh-kompaniy-za-nezakonnoe-privlechenie-sredstv-dolshchikov/

In East Kazakhstan, the court fined a number of construction companies for illegally raising funds from equity holders

Approximately a month ago, on the website of the akimat of the region, an appeal appeared to the population to be careful in relation to the PR campaigns of a number of construction LLPs.

As stated in the text, individual companies illegally began to advertise the construction of housing, providing for the attraction of funds from buyers. That is, on the principles of equity participation. Here, on the website, the regional executive power published a list of companies that, by law, do not have rights to use the funds of equity holders.

The other day it became known that four developers were punished just for the illegal attraction of money from equity holders. Court in accordance with Art. 320 of the Code “On Administrative Offenses” fined them 300 monthly calculation indices, or 919 thousand tenge.

According to the regional department of the State Architectural and Construction Control, during inspections based on complaints from the population, it turned out that eight LLPs had begun building housing without even receiving the appropriate permits – an architectural and planning task, an agreed draft design.

“Builders have begun work in the hope of obtaining all permits along the way,” said Inna Akhaeva, head of the department. – However, according to the law, if a violation is detected, they are required to suspend work for at least a month. We now have facts when two companies dug pits and stopped because they are engaged in obtaining expertise. Two LLPs had a sketch that was not agreed upon. They began to build a house, but not the same as it was originally stated in the project. And this is, in fact, a hoax. We have suspended work there until the documentation is in order.

As explained in GASK, the legislation provides for three ways to organize shared construction. Firstly, an entrepreneur can obtain guarantees from a single operator (KZhK JSC). Secondly, to involve a second-tier bank. Thirdly, it can attract money from equity holders, but only after the frame of an apartment building has been erected. At the same time, the developer must still have permission from local executive bodies. In practice, people often give away their money without even checking the documents from the construction company.

“There is an example in Ust-Kamenogorsk when LLP launched a high-profile advertising campaign “Buy an apartment – get a kitchen set as a gift”, but there is no residential building, it has not been built,” said the head of the department. “Moreover, developers include a clause in booking agreements that if the buyer refuses to purchase, he is obliged to … pay a penalty! It is illegal.

The management urged citizens to be most attentive to the procedure for acquiring housing, especially in the case of shared construction.

Often the developer shows only “pictures”, presentations and by all means tries to convince to buy his apartment. Lists the benefits. So, in order not to really become a “tenant” of some kitchen set, it is important to remember that the LLP is obliged to submit such permits as the right to a land plot, an architectural and planning assignment, a draft design, state expertise, a notice of the start of construction – installation works. And, of course, the developer must have permission from the local executive body to raise funds from equity holders, plus the guarantee of a single operator.

Source: https://kazpravda.kz/n/v-vostochnom-kazahstane-sud-oshtrafoval-ryad-stroitelnyh-kompaniy-za-nezakonnoe-privlechenie-sredstv-dolshchikov/