Bucharest City Hall has to pay EUR 76 M compensation to local businessman

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The Supreme Court has ruled in one of the trials with a huge real estate and financial stake in Bucharest.

The Capital City Hall has to pay almost EUR 76 million to businessman Costel Costanda as compensations. In exchange, the entrepreneur will have to return a residential district in northern Bucharest, The French Village, in the same condition it was when he got it.

Costanda has sued the Bucharest City Hall ten years ago, accusing the municipality of not honoring a contract involving Bordei Park, an area where the businessman planed to build a residential compound.

Costel Costanda’s business story started almost 20 years ago when he obtained in court about 3 hectares of land in the French Village, a residential area in northern Capital. The Bucharest municipality, which owned several buildings out there, offered Costanda in exchange the same land area in Bordei Park. Once he became an owner in the park, Costanda intended to develop a residential compound there.

However, following the public opinion’s pressure, Constanda’s plans in Bordei Park failed and he sued the City Hall, winning compensation of EUR 18 M.

The City Hall refused to pay, and proposed the businessman a new compromise, by offering him a plot of land in the French Village.

Several villas were on that plot of land and Constanda wanted to demolish them, and build new ones to put them for sale. However, the Bucharest councilmen did not give their consent for these buildings, although they had committed to approve the zonal urban plan through a contract, Constanda claims.

The businessman accused the councilmen of bad faith and of breaking the contract, which made him pay EUR 200,000 bank interests per month.

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