TAI Defeated in Court Battle Against "Vardani Zartonq" LLC

TAI Defeated in Court Battle Against "Vardani Zartonq" LLC

The Ministry of Territorial Administration and Infrastructure (TAI) lost the lawsuit against "Vardani Zartonq" LLC and և is still considered to be the holder of the soil management right Sofi-Bina gold-polymetallic mine in Vayots Dzor Region.

Reminder: by Decree No. 1075-A of RA Minister of Territorial Administration and Infrastructure dated on 07.08.2020, the soil management right of "Vardani Zartonq" LLC was terminated. The following circumstances were taken as the basis for the decree:

1. Since obtaining the development permit, the Company has not carried out any extraction works/has not ensured the reasonable and comprehensive use of the subsoil as defined by RA Subsoil Code, Part 1 of Article 4 of the Code/.

2. The Company has not met the requirements of the mineral extraction design project.

3. The Company has not ensured the fulfillment of the contractual obligations of soil management.

RA Administrative Court has rejected the Company's claim, whereas RA Administrative Court of Appeal upheld it. It should be noted that before the adoption of TAI decree, EcoLur was informed about the non-development of Sofi-Bina gold-polymetallic mine by the employees and residents of affected Zaritap community, as well as the report published by the Company within the framework of the Transparency Initiative. The company did not produce, did not pay royalties, and did not allocate money for socio-economic obligations. It had only 1 employee.

It is noteworthy that the RA Ministry of Territorial Administration and Infrastructure did not respond to this appeal.

Thus, Administrative Court of Appeal upheld the Company's motion to suspend the TAI decree.

RA TAI filed a complaint with the Court of Cassation in violation of the deadlines. However, the court rejected the ministry's motion to consider the reason for the missed deadline for filing a cassation appeal as respectable, to restore the missed deadline, and left the cassation appeal filed by the ministry without examination.

The decision entered into force on July 7, 2021. It is not subject to appeal.

May 10, 2022 at 11:06