Land purchase for Mall of Istanbul project
More resultsIntroduction
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
Applicable corruption offence
Qualified theft by deception (Article 158 b/c/d/e/h of the Turkish Penal Code No. 5237)
Suspects' institutional affiliation
Mayor of Küçükçekmece district of Istanbul (2004-2014); CEO of Torunlar GYO: Housing Development Administration of Turkey (TOKİ)
Date of offending
25 January 2008 to 3 June 2009
Sector affected
Construction & urbanism
Related developments
In 2016, former Küçükçekmece mayor Aziz Yeniay was elected to the board of Torunlar GYO, proving a concrete relationship between the former mayor and the corporation. By decreasing the value of the land, government institutions and the municipality clearly decreased the construction costs of the shopping mall. The Ministry of the Interior rejected the request of the Chief Public Prosecutor’s Office of Küçükçekmece district to investigate the case for fraud.
Court
Started at Küçükçekmece 1st Civil Court of First Instance (Asliye Hukuk Mahkemesi)
Brought before the Council of State (Danıştay)
Current phase of the case in criminal procedure
Procedural history
Küçükçekmece 1st Civil Court of First Instance rejected the accusations and demands of the previous landowners. The case was appealed to the Court of Cassation in 2014. The court accepted that the land values in the area were driven down by TOKİ and Küçükçekmece district and that the plaintiffs had been forced to sell their land at a lower price. In 2015, the court ordered the defendants to pay the Durmuş family the excess outstanding amount, but rejected the demand to cancel the project owing to the statute of limitations.
In 2017, the Chief Public Prosecutor’s Office of Küçükçekmece district requested approval from the Ministry of the Interior to investigate the allegations against Aziz Yeniay. However, the ministry rejected the request. This decision was appealed to the Council of State in 2018 and rejected in 2019 (see here).
Obstacles
The most prominent obstacles are the efforts of the Istanbul Metropolitan Municipality and TOKİ to change the zoning plan and the alleged intimidation of the landowners, which clearly show the close relationship between Torunlar GYO and the ruling party. As mentioned above, the former mayor of Küçükçekmece (2004-2014) later became a board member of Torunlar GYO, further underscoring the close ties between the company and the ruling party.
Article 3 paragraph (h) of Law No. 4483 gives the Interior Minister the authority to allow or disallow the investigation into accusations against mayors. By the power vested in him by the law in question, Interior Minister Süleyman Soylu rejected the investigation into Aziz Yeniay.
Resolution of the case
The Court of Cassation ordered the defendants to pay the Durmuş family the excess outstanding amount in 2015, but rejected the demand to cancel the project owing to the statute of limitations.
Applicable minimum and maximum penalty
Prison from three to 10 years and up to 5,000 days of judicial fine according to Article 158 of the Turkish Penal Code
Charges pressed by the prosecutor in the actual case (including the penalties requested)
The Ministry of the Interior did not give permission to the Chief Public Prosecutor’s Office of Küçükçekmece district to investigate the case.
Sanctions imposed
The Court of Cassation ordered the defendants to pay the Durmuş family the excess outstanding amount.
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