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High-level corruption cases in the Western Balkans and Turkey

Land purchase for Mall of Istanbul project - High-level corruption cases in the Western Balkans and Turkey

Land purchase for Mall of Istanbul project

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Introduction

The shopping mall project began when the mayor of Küçükçekmece met with landowners to convince them to sell their land to the Küçükçekmece district. After the landowners refused to sell, the Istanbul Metropolitan Municipality Zoning Commission redesignated the land as a school and social district, and the property value dropped so that the owners were forced to sell.

Country
Turkey
Sector
Construction and urbanism
Offence
Qualified Theft by Deception
Phase
Official detection

Description of the case

The shopping mall project began when the mayor of Küçükçekmece met with landowners to convince them to sell their land to the Küçükçekmece district. After the landowners refused to sell, the Istanbul Metropolitan Municipality Zoning Commission redesignated the land as a school and social district, and the property value dropped so that the owners were forced to sell.

The Mall of Istanbul project was taken to court by the landowners for qualified theft by deception under Article 158 of the Turkish Penal Code. The plaintiffs claimed that Küçükçekmece district, Torunlar GYO, the Istanbul Metropolitan Municipality Zoning Commission and the Housing Development Administration of Turkey (TOKİ) connived to purchase the land from owners by using state mechanisms such as amendments to zoning plans and urban transformation area designations. In 2008, the value per square metre was TL10,000 (€5,263). However, by changing the zoning plan twice, the value of the land was driven down. The owners were forced to sell when the area was redesignated a second time, now as an “urban transformation project” zone. For instance, one family owned 1,595 square metres of land that sold for TL650 (€342) per square metre later in 2008 (see here).

Specifically, the land was first designated as a school and social district (libraries, dorms, auditoriums). This decision was taken by the Istanbul Metropolitan Municipality Zoning Commission of which Küçükçekmece Mayor Aziz Yeniay was the president (see here).

According to news sources, TOKİ contacted the owners and warned them that their land was now being designated as an “urban transformation project” zone and that they would be taken to court if they did not attend the bargaining meeting. News sources then reported that the owners were selling their land, but when they were ready to complete the sale, they found out that they were selling to Torunlar GYO, not TOKİ. Afterwards, TOKİ informed them that schools were going to be built on the land by Torunlar and the company would pay the owners directly. In 2011, the landowners were shocked to see that a shopping mall was being built on their former land. The first appeal was lodged in 2011 with the Chief Public Prosecutor’s Office of Küçükçekmece district. The charges included taking advantage of a person in a dangerous or difficult circumstance; taking advantage of a weakness in the capacity to perceive; using, as an instrument, the legal personalities of a public institution or corporation, a public professional institution, a political party, a foundation or an association; and causing losses to a public institution or corporation (see here).

One of the victims, Nazif Albayrak, rented 224 acres of land for 10 years at a price of TL360 million (roughly €177.3 million), paying the first two years’ rent in advance. The land rented to Albayrak was

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