Fraud scheme in Netishyn: developer sells land under local residents' homes

In Netishyn, Khmelnytskyi Oblast, residents of six apartment buildings faced an unexpected problem. After buying apartments, making repairs, and creating an association of apartment building co-owners (OSBB), they discovered that the land under their houses still belonged to the developer. Oleksandr Myklush, an entrepreneur and former deputy of the Khmelnytskyi Oblast Council, had promised to transfer the land to residents for five years, but instead began dividing it into separate cadastral numbers and offering to buy it out. Stop Corruption correspondents went to Netishyn to check the situation on the spot.

A plot of about three hectares on Energetikov Street was sold to Myklush for about 1.8 million hryvnias at an auction. Residents claim that this amount also included the cost of cutting down trees, since the area was once a forest.

Six apartment buildings were built on this land. Myklush offered apartments on favorable terms, but many buyers did not know that the land remained in his private ownership.

Yelizaveta Marunko, one of the residents, says that she learned about the status of the land during a meeting of the housing association in 2020. “If I had known about it earlier, I would have bought an apartment on different terms. We were promised that the land would be transferred to the association for free or for a symbolic hryvnia,” she notes.

The promises remained unfulfilled: residents discovered that the land plot was being actively subdivided, and more than 90 cadastral numbers had already been allocated, parts of the land were being sold for private parking lots, and construction had begun on the site of the planned recreation areas.

Myklush threatened residents if they did not conclude contracts for the lease or purchase of land. According to Marunko, he assured that he could limit access to electricity and water supply.

None of the houses have a proper package of technical documentation, and residents do not know where the communications are. Repair work on roofs and stairs was carried out irregularly, which the residents paid for themselves.

The price initially announced by the developer for the land was 500 thousand hryvnias, and including taxes, about 700 thousand hryvnias. This is only for a small part under the foundation.

Residents have repeatedly appealed to the authorities. Although a commission was created to record violations on site, Myklush obstructed its work, claiming that the land plot is private property.

Representatives of the city council confirmed that the commission was on site, but it was not possible to find out why no measures were taken. It turned out that the purchase and sale agreement and other documents went through the city council, signed by Mayor Oleksandr Suprunyuk.

Suprunyuk, who issued the development permits, himself has connections to other commercial projects, which raises additional questions about conflict of interest!

Meanwhile, new construction work has begun nearby without documents. The development project, which has already been launched, involves cutting down trees on the site of the future recreation area.

Residents have begun to protest against the developer’s activities, but given the current situation, the question remains: is the local community really in control, or is the developer taking advantage of the situation?