Fields against the background of the city of Beer Sheva (Photo: ShutterStock)
The District Court in Tel Aviv required Nash Ramot Ltd. to pay development expenses in the amount of 16.5 million shekels (in addition to the construction input index from 2009) for its share as a plot owner in the development works, which were carried out by the Ministry of Construction and Housing in the Ramot neighborhood in Be'er Sheva.
Nash Ramot Company , owned plots of land in the Ramot neighborhood and tried to avoid paying the Ministry of Construction and Housing for the development works carried out in the neighborhood. The development works carried out by the ministry also served Nash Ramot's lots, and despite this, Nash Ramot for many years tried to avoid paying for them.
We will explain: the development works were carried out in the Ramot neighborhood in the well Sheva, where the Nash Ramot company owned several lots. The company later sold the lots to the Erazim company, at a price that included the calculation of the value of the development - this, even though it purchased them at a price that did not include the development, and reaped a profit from it.
The lawsuit on behalf of the Ministry of Construction and Housing against Nash Ramot was filed through attorneys Asnat Dafna and Avital Keller from the Civil Enforcement Unit at the State Attorney's Office and the office of attorney Lustigman Lefler Rosenberg.
Tried to get rich at the expense of the public purse
In the early 1990s, the State of Israel allocated six plots of land in the Ramot neighborhood of Be'er Sheva to Shikun and Development Ltd. The owners of the land must pay the Ministry of Construction and Housing for the development works carried out on those plots. Four of the plots were sold by Shikun Pituach to Nash Ramot Ltd. m, and the latter sold the lots, as mentioned, to the Arzim company.
In the agreement with the companies, Nash Ramot assumed responsibility for the development expenses.
This is in light of the fact that Nash Ramot purchased the plots at the price of land without development works, and sold them after about a year and a half at the price of developed plots that include development works, and was enriched as a result.
During 2012, the State of Israel filed a lawsuit against the Housing and Development Company, Nash Ramot and Erazim Ltd. for the costs of developing the land. The District Court ruled that Nash Ramot must pay for the development costs and also ruled that it must pay NIS 8,640,000 (plus attachments).
Regarding this decision, Nash Ramot appealed to the Supreme Court, both the charge and the amount of the charge.
In its ruling, the Supreme Court ruled that Nash Ramot must pay the development expenses, and returned the discussion on the question of the amount of the payment to the district court, when the Supreme Court instructed it to conduct the calculation in a different way.
Knew it well - and tried to avoid it: the verdict
In a ruling recently issued by the Tel Aviv District Court, Judge (Associate) Yehuda Fargo accepted the full estimate submitted by the Ministry of Housing regarding the development expenses, and ruled that according to the new calculation method, the Nash Ramot company must pay NIS 16.5 million, plus linkages.
The judgments given in the case determined that there is no justification for allowing the owner of a private lot to benefit from development works carried out by the state and to get rich at the expense of the public purse, while the owners of the adjacent lots bear the burden of these development expenses.
An absolute majority of the plot owners purchase the plots from the Israel Land Authority, as part of tenders and pay in exchange for the rights to the plots the value of the plot and the cost of the development works.
The lots for which the lawsuits were filed belong to private owners and were not marketed by the Israel Lands Authority, the Nash Ramot company tried to take advantage of this matter and evade payment at the expense of the public purse, something that the state could not accept.
In its decision, the court noted that:
"Every lot owner knows that he will have to pay development expenses. It was proven to me that Nash knew this very well, but she decided to ignore this obligation in the hope that she would not have to pay these development expenses. What Nash is asking now is to treat her differently from all the owners of the lots in the Ramot neighborhood in Be'er Sheva and in the country At all. She requests to pay development expenses in accordance with the conditions and special procedure for her."
Real estate
news
Tags
real estate
