February 24, 2021

Justice rejects Ayuso’s last resort and cancels the sale of 3,000 apartments to a vulture fund


Justice does not agree with the Community of Madrid and confirms that the nullity of the sale of the 2,935 social housing units in 2013 affects all the properties and not only that of the plaintiff, as the Government of Isabel Díaz Ayuso has argued when executing the judgment of the Supreme Court that invalidated the operation carried out by the Executive of Ignacio Gónzalez (PP).

The vulture fund to which the Community of Madrid sold 3,000 social apartments claims a "compensation for damages" after the nullity of the operation

The vulture fund to which the Community of Madrid sold 3,000 social apartments claims “compensation for damages” after the nullity of the operation

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The Contentious-Administrative Court number 29 of Madrid has issued an order that agrees with those affected, who have been waiting for months for the regional Executive to comply with the last ruling issued in March by the Supreme Court, confirming the nullity of the sale, and recover the homes until now owned by Azora. At that time, the government of Díaz Ayuso clung to an interpretation of the sentence, assuring that the Justice only forced them to “exclusively compensate the [único] plaintiff “, Rachid Bouikou.

In an order issued on February 1, the Contentious-Administrative court number 29 rejected the Community’s interpretation. “It is declared that the judgment of this court dated May 21, 2018 reaches the annulment of the award to Azora Gestión of the contract for the sale of the 32 developments and with it all of the properties that comprise them”, states the magistrate. Likewise, it gives a period of ten days to the Social Housing Agency of the Community of Madrid to “proceed to request the annotation of the cancellation of the sale in the registration of each and every one of the registry properties that make up the 32 promotions that were the subject of the sale canceled “.

The magistrate recalls that the Community had been left alone in the defense that the sentence that determined the annulment of the sale of almost 3,000 public housing “only” reached “the appellant and [a] no one else. “Not only the defense of the complainant, the lawyer César Pinto, defended the opposite, also the companies that owned those properties: Azora Gestión and EnCasa Cibeles.” The ruling of the sentence makes it crystal clear. It literally totally annuls the two contested resolutions and says’ I leave without effect the adjudication and alienation that is agreed upon by the first of them and with it the transmission of the lease contract from the plaintiff to the owner resulting from said alienation, “the order states.

In the ruling issued this Monday, the magistrate explains that the judicial decisions issued previously are not limited “to annulling the transmission of Don Rachid’s lease, as the Community of Madrid alleges.” “This cancellation is a consequence of the previous cancellation of the award and sale of the 32 promotions,” he clarifies. And it goes further: “There is no reason why, at the time of executing the sentence, this legitimation is restricted to their particular situation, as the Community alleges.”

Until the Government of Díaz Ayuso does not execute the ruling, the magistrate warns the company that manages these homes that it must refrain “from any action aimed at the sale of any of said properties”, although it does open the door to continue executing evictions while the Social Housing Agency does not assume possession of the properties. “It will not be possible to prevent said merchants from exercising the corresponding actions in case of non-compliance by the tenants of the lease,” explains the magistrate, who assures that “it is not legally correct to leave the fulfillment of the lease contracts from now on at the will of the tenant and give rise to anarchy and the deterioration of the houses until they are taken over “by the Community.

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