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Working group under the Ministry of Regional Development gathered for its first meeting on Wednesday to consider ways to resolve the problem of cheated investors in the sphere of housing construction
A working group under the Ministry of Regional Development gathered for its first meeting on Wednesday to consider ways to resolve the problem of cheated investors in the sphere of housing construction. Taking part in the meeting, chaired by Regional Development Minister Vladimir Yakovlev, were representatives of the Association for help to the investors - victims of the construction fraud, personnel of the Ministry and the Rosstroi agency, experts in the sphere of construction, economy and jurisprudence, the Ministry's press service told Itar-Tass. Earlier, Russian President Vladimir Putin demanded that the government "find a solution to prevent the cheating of investors" in housing construction. "It's necessary to make sure that there are no more problems with cheated investors," Putin noted. He urged other participants in the conference "to think about how it might be done, and involve citizens in the solution of this issue as broadly as possible." Last week, Rosstroi's head Sergei Kruglik promised that his department, jointly with the Ministry of Regional Development, will work out in six weeks "a set of measures to protect investors." "A compensation for the lost money to cheated investors can be effected either with land plots or money that must be allocated by both the federal and regional budgets," Kruglik said. He said he had taken part in drawing amendments to the law whose 2nd reading the State Duma /lower house of the Russian parliament/ is expected to approve next week. The document "fully balances responsibility between market participants," Kruglik emphasized, adding that citizens' interests had not been infringed upon. On June 9, the State Duma approved the 2nd reading of the bill aimed at attracting financial resources of legal entities and natural persons for the construction of apartment houses and other real estate facilities. The main objective is to achieve a balance of interests between the construction companies and private investors. To this end, it was proposed to expand the range of cases allowing the attraction of citizens' money to housing construction. The size of sanctions for the failure to meet one's obligations - on the part of the company or investors - will approximate the refinancing rate of the Bank of Russia, but legislators have kept a higher level of the protection of citizens' interests.
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