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Regarding the comment of the Human Rights Defender of the Republic of Armenia Judicial Acts Compulsory Enforcement Service of the Ministry of Justice of the Republic of Armenia  2010-04-27 10:32

The Human Rights Defender has reflected on issues of arranging electronic auction of the Judicial Acts Compulsory Enforcement Service of the Ministry of Justice of the Republic of Armenia. In particular, he mentioned that the property is alienated with prices that are far below those prevailing on the market, and brought an example of selling an apartment estimated AMD 11 million for AMD 1 million.

JACES finds it necessary to clarify this statement.  The case mentioned by the Human Rights Defender refers to the residential house located at 68 Abovyan address in Vanadzor city, which was alienated through compulsory electronic auction in October 2009 for one million nine hundred and seven thousand drams. It is difficult to perceive why the Human Rights Defender, in his speech, decreased the price of the alienated property by almost a half.  The mentioned property was listed in the JACES auction since 2004 and its initial price was set at AMD 11 million. By the way, in 2004 the market price of immovable property was much higher than in 2009.  Yet, as the Human Rights Defender himself mentioned, due to lack of participation in the auction and willingness to purchase the property, the latter’s price - according to the letter of the law - fell to one million nine hundred and seven thousand in five years.

We would like to mention that the compulsory electronic auction of the Ministry of Justice of the Republic of Armenia (www.ajurd.am) is - by its transparency and exclusion of the impact of "human factor" during its implementation - unique not only in the Republic of Armenia, but also among similar systems operating in the CIS countries. As to the cases where the prices of bids decrease in the manner prescribed by legislation, JACES does not exclude such possibility.  In numerous publications, the representatives of JACES have mentioned the low level of attractiveness of the property which results in low interest of auction participants towards the property.  The latter is conditioned by peculiarities of the mentality of our society.  JACES has frequently called on to the public to actively participate in the compulsory electronic auction.  Moreover, JACES has submitted proposals of legislative amendments, which are now in the process of consideration.

JACES press secretary


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