Supreme Court: Construction Permits Should Be Obtained Before Commencement of Construction

15 July 2015
View Client Update

Key takeaways

  • In its Ruling dated June 16, 2015 in Case No. А07-7616/2014 the Judicial Chamber of the Supreme Court of the Russian Federation on Economic Disputes set forth its position on one of the most problematic issues arising in the course of the implementation of construction projects, namely: the question of whether a construction permit can be obtained after construction has already commenced.
  • The Supreme Court indicated that a construction permit must be obtained prior to the commencement of construction of the property.
  • Where the competent authority has rejected an application for the issuance of a construction permit after the commencement of construction of the property, such rejection will in most cases be deemed lawful by a court of law.
  • If a construction permit for a property is not obtained, such property may be deemed unauthorized construction.