167 defrauded: Tashkent court probes fake housing project built on school land

An eight-story residential building under construction in Uchtepa district was supposed to be handed over to buyers in December 2022, according to promises made by the developer. That never happened. In September 2024, the founder of the construction company was arrested. According to information provided to Kun.uz, the company in some cases sold the same apartment to more than one person. Most victims paid large sums in cash directly to the founder. In total, 167 people were defrauded by this developer.

On May 14, the Shaykhontokhur District Criminal Court held a hearing on the case involving the founder and representatives of Real Lion Houses. It was revealed that the company, registered in November 2020, had offered people apartments in the planned eight-story building in Uchtepa. According to the case files, most buyers made payments of 70–80% for their apartments in 2020–2021, with some paying the full amount. Much of the money was handed over in cash to the company’s founder. In some cases, one apartment was sold to two different people.

“In 2021, I heard that construction had started, so I went to the office they were working from. I then sold my current home and invested $17,000 into this project. Because I paid in cash, they gave me a small discount. But now it turns out my apartment was sold to two people,” said one victim.

In court, this victim, Yulduzkhon Mamazoyitova, said the founder had promised to finish the building within a year.

“On that promise, I moved in with my daughter. It’s been five years, and I’m still living at her place. Every time I asked about the house, they told me, ‘Ma’am, the local neighborhood committee isn’t allowing further construction.’ I accepted that and tried to understand. I have no breadwinner; I’m a first-degree disabled person. When I signed the contract, I could still see. It’s been a year now that I’ve gone blind,” she said.

The defendants confirmed Mamazoyitova’s statements. They explained the duplicate sale by saying she had entered the deal as an “investor” and insisted she would still receive an apartment.

Investigators charged the founder and his associates with fraud and several other criminal offenses. Some victim testimonies are summarized below:

• “In 2021, I was one of the first to see the location and paid for two one-room apartments. I paid 100% for one and 70% for the other, both through the bank. It’s been five years of being strung along — every time they said, ‘It’ll be ready in three or four months.’”
• “I signed a contract on September 15, 2021, and made an initial payment of 238 million UZS through InfinBank. Over the next two years, I completed the full payment.”
• “We signed a contract on September 16, 2021, and paid 240 million UZS for a one-room flat. At the time, the area was fenced but not excavated. We paid 68 million UZS in cash and the rest in installments over 24 months via bank. In total, I paid 228 million.”
• “On September 18, 2021, I signed a contract for a 43.8 m² apartment. I converted $16,500 into UZS and handed it over in cash. They gave me a certificate. Later, I was allowed to pay the remaining 57.53 million UZS in installments — 21 million went through the bank, and the rest in cash.”

The defendants admitted to receiving money in all of these cases.

One buyer purchased nine apartments in Uchtepa and paid nearly 2 billion UZS. Another discovered that the apartment he bought had already been sold to someone else — who had even started renovation work.

Judge Tolibjon Obidov asked what had happened to all the cash. The founder claimed it was spent on wages for construction workers. He also justified delays by citing limited work hours (5–6 hours a day) and neighborhood resistance. The building, which was supposed to be completed by December 2022, was delayed allegedly due to public objections. The founder was arrested in September 2024, nearly a year after the missed deadline.

During the hearing, one victim claimed that after the founder was detained, his legal representative continued collecting large sums from buyers. Another victim said they paid 95 million UZS to the founder’s deputy after the investigation had started.

According to one of the victims, the land in Uchtepa was illegally acquired — the original plan was to build a private school. Only after constructing 4–5 floors was the structure retroactively legalized as a residential building.

The founder's lawyer stated that his client had other projects in Chilonzor and Yakkasaray districts, where the number of affected buyers was much smaller.

“A court investigation has already begun for the case in 23rd Quarter. We will also interrogate buyers from the Chilonzor Norkhon neighborhood and the Yakkasaray project,” said lawyer Azamat Karimov.

The State Inspection for Control in Construction and Housing & Utilities gave a comment on the matter. According to the agency, the building was originally approved as a private school. In practice, however, a multi-story residential building was erected. Multiple written warnings and formal notices were issued to the developers, but construction continued. The agency filed lawsuits, which were upheld by the courts. Although contracts were signed under the name Real Lion Houses, the company later rebranded itself as New World Star.

On March 11, 2024, the Tashkent Interdistrict Economic Court ruled that the building, officially registered as a private school under New World Star LLC, must be dismantled as it was unlawfully converted into a multi-story housing complex. However, this decision has not yet been enforced.

The court announced a recess until May 21.