Jerusalem Municipality suing Holyland developers for NIS 129m.

The claim contends that the entrepreneurs behind the venture acted fraudulently by concealing the developments true value.

By
October 15, 2013 01:48
1 minute read.
The Holyland Tower in Jerusalem

The Holyland Tower in Jerusalem 370. (photo credit: Marc Israel Sellem/The Jerusalem Post)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

The Jerusalem Municipality submitted a lawsuit to the capital’s District Court Monday demanding NIS 129 million in damages against Holyland Tour, the developer behind the Holy Land housing development, for allegedly scamming the city out of millions in owed taxes.

The claim, which also names several other companies related to the real estate project, contends that the entrepreneurs behind the venture acted fraudulently by concealing the developments true value, resulting in tens of millions of shekels saved in betterment levy taxes.

Be the first to know - Join our Facebook page.


The municipality issued a statement Monday noting the grounds for the lawsuit.

“The Jerusalem Municipality fights any attempt to defraud the municipality and the residents of the city,” it stated. “As soon as we discovered the betterment levy scam to steal money from the public purse, we acted immediately to ensure that the funds will be returned to the residents of the city.”

According to the Planning and Building Law, land owners and the municipality must reach a consensus on the assessment of a property’s value. By misleading the municipality, the suit contends, the Holyland developers saved over NIS 100m. in taxes.

As a result, attorneys representing the firm Epstein & Knoller are demanding NIS 129m., representing the difference owed the municipality, plus interest.

“We believe that the court will treat this claim’s severity seriously to ensure that entrepreneurs do not steal money from the public purse,” the statement added.



The lawsuit relates to the same project that has ensnared former prime minister Ehud Olmert on bribery charges, although the two cases are unrelated.

Related Content

Riot
August 31, 2014
Rioting resumes throughout east Jerusalem Saturday night

By DANIEL K. EISENBUD