by nhowarth » Tue Jan 10, 2006 1:08 pm
Regrettably, there is a court case going on at the moment involving the illegal sale of Turkish Cypriot owned property in the Republic.
Here is the article, published in this weeks Cyprus Weekly:
Six to stand trial over TC property fraud
By Menelaos Hadjicostis
SIX people, including a suspended Land Registry Department official and the Pyrgos community leader, will stand trial next week in what is touted as one of the biggest and most complex land scams involving Turkish Cypriot property in Cypriot legal history.
Civil servant Michalis Kalathas and Pyrgos community leader Krinos Theocharous are among six suspects facing 60 charges, including forgery of official documents, corruption and attempts at a cover-up in the bogus sale of 38 donums of Turkish Cypriot-owned prime beachfront property in Tylliria for hundreds of thousands of pounds.
"This is one of the biggest cases in the island’s legal history that will see 150 witnesses being called to testify and 2,000 different pieces of evidence introduced in court," State Prosecutor Savvas Matsas told The Cyprus Weekly.
Starting Wednesday, the trial is expected to wrap up this summer and offshoot civil proceedings could have a significant bearing on the legal fortunes of hundreds of foreign nationals involved in a land-grab of Greek Cypriot-owned property in the occupied north.
The property, abutting the main Massoura to Pyrgos road, belongs to Turkish Cypriots Celal Gilan, Sevdiye Dede and Yasemin Mehmet who inherited it from their parents.
Clouded
However, their claim to the property was clouded by the fact that they had not been registered at the Land Registry Department as the owners.
Matsas said there is evidence to back up the Turkish Cypriots’ claim, including registry records dating back to 1907 showing their parents were in fact the rightful owners of the property.
The defendants are accused of exploiting that confusion and hatching a plan to forge official Land Registry documents so as to certify that the property belongs to two Greek Cypriots.
With those forged certificates, the Greek Cypriots then transferred the property to their grandparents to further obscure the paper trail leading back to them. Subsequently, they sold off the land to the now defunct Greek Cypriot investment company White Knight, a subsidiary of Sharelink.
The August, 2001 sale to White Knight at the height of the Cyprus Stock Exchange frenzy amounted to £972,174 – almost a third more than property’s real value at the time.
Matsas said the defendants are accused of splitting the pay-off, with one getting a Θ163,000 share while the other five each having received around Θ120,000 deposited into private bank accounts.
The Pyrgos community leader along with two community council members are accused of green-lighting the transaction for a share of the money.
The criminal case against the defendants appears to be open-and-shut as the government is keen to demonstrate an iron will in prosecuting any wrong-doing involving the extremely sensitive issue of Turkish Cypriot property in the government-controlled areas – especially so when there is so much at stake over Greek Cypriot property in the Turkish-held north.
Sticky
But where it could get extremely sticky is in the ensuing civil case that would pit the Turkish Cypriots against White Knight lawyers in a court battle over ownership.
A civil trial appears certain as Interior Minister Andreas Christou – who is, by law, the guardian of all Turkish Cypriot property in the government-controlled areas abandoned after the 1974 Turkish invasion – has already fired off a letter to the Attorney General Petros Clerides requesting that his office expedites legal proceedings.
It’s yet undecided whether the civil trial would either run concurrently with criminal proceedings or begin after they conclude.
But it’s awaited with keen interest by observers and lawyers alike on both sides of the divide because of its weighty legal ramifications.
Although the Turkish Cypriots appear to have a cast-iron case, legal circles suggest that White Knight won’t go down without a fight to protect an investment that cost it close to £1m.
It’s expected that White Knight would posit the defence that it purchased the property "in good faith" and is entitled to retain ownership since the transaction was completed with legitimate title deeds - irrespective of claims to be the rightful owner.
Implications
The "in good faith" defence is highly controversial and could have wider legal implications because it is what a British couple will use to fend off possible seizure of their UK property and assets for illegally building a £160,000 villa on Greek Cypriot property in occupied Lapithos.
David and Linda Orams were last year ordered by a Cypriot court to demolish the villa and pay compensation to Meletis Apostolides for illegally using of his property.
The Orams are now appealing their conviction in a British court that will either enforce the Cypriot court’s decision or rule it inapplicable.
That decision will set a key precedent that will certainly shape the legal fortunes of hundreds of Britons and other foreign nationals who have illegally purchased Greek Cypriot property in the north.
It’s for this reason that the Orams’ court defense has been taken up by the law office of Cherie Blair, the wife of British Prime Minister Tony Blair. She is expected to argue that the Orams purchased the property "in good faith" without knowing that it either belonged to someone else, or that title deeds they were issued for it by the illegal "Turkish Republic of Northern Cyprus" were bogus.
Crucial
Timing is crucial on the outcome of these two cases. That’s because an early ruling in the Tylliria civil trial could impact the Orams’ proceedings.
The Tylliria civil trial could be a harbinger for a possible wave of Turkish Cypriot legal action seeking property restitution in domestic and European courts as a potential counterweight to approximately 1,400 Greek Cypriot property cases currently pending against Turkey in the European Court of Human Rights.
The three Turkish Cypriot owners have already signaled their intentions to appeal to the ECHR if they are "treated unjustly".
"We have already begun preparations. We would not let them take away our rights," Turkish Cypriot daily Kibris quoted them as saying.
Emine Erk, president of the Turkish Cypriot Human Rights Foundation, said the Tylliria case is being followed very closely in the north to discern any similarities with the Orams case.
"The Turkish Cypriot owners are preparing to take all necessary legal steps for the return of their property. The ‘good faith’ issue will be a very contentious one," Erk told The Cyprus Weekly.