June 23, 2023

All benefits in the sphere of direct allocation of land plots have been canceled

On June 20, 2023, the Presidential Decree No. PD-99 “On Amendments, as well as on invalidation of certain acts of the President of the Republic of Uzbekistan in connection with the introduction of the institute of private property in relation to non-agricultural land plots and improvement of legislation on the inviolability of property rights” (the “Decree”) came into force.

The decree abolished all benefits and exceptions for the direct allocation of land plots. The amendments also relate to the transfer (sale) of non-agricultural land plots based on ownership and lease through an electronic online auction, as well as the improvement of by-laws regulating the activities of funds for compensation of property damage caused to individuals and legal entities.

From now on, the damage caused to a business entity as a result of illegal decisions, and actions of state bodies, their officials, and employees, are subject to compensation in full based on a court decision at the expense of trust funds for repayment of property damage caused to individuals and legal entities. Subsequently, the amounts of payment are subject to recovery in a recourse procedure from the perpetrators in full.

The decree abolished the allocation of irrigated agricultural land for non-agricultural purposes, including for the construction of industrial and civil buildings and structures and greenhouses, which use new methods of advanced technologies, such as hydroponics and others that do not require fertile soils. Before the entry into force of this Decree, the exceptions were cases of allocation of land by the decision of the President.