Upon the application of the Arbitration Court of Moscow within the case №А40-157103/2013 the leading experts of VALRUS conducted the expertise to determine the market value of the land plot of NLMK (Novolipetsk Steel) in order to contest the results of the State Cadastral Valuation.
Due to the State Cadastral Valuation the market price of land plot (cadastral number 48:20:0035001:230) was established at rate of 73 250 746 686 rub. (2 661 rub./m2). Novolipetsk Steel dissatisfied with the specified financial statement and filed a complaint to establish cadastral value in the amount of its market price. The valuation was performed by ‘Appraisal Institute’ (Chief executive, Doctor of Economics, professor N. V. Volovich) hired by NLMK. Since FSBI “The Cadastral Federal Council”, the Rosreestr and Administration of Lipetsk district and Lipetsk city engaged as third parties didn’t accept the value determined by the appraiser of NLMK, the independent forensic expert was invited by the Court to conduct valuation. Based on VALRUS valuation results the market value of the land was set at 25 350 312 100 rub. (921 rub./m2).
September 15, 2014, the results of expertise were considered at the court hearing. The parties applied the petitions concerning the rejection of the expertise results. However, after detailed survey of the experts carried out for more than an hour and a half, the Court decided to admit the accuracy of the performed expertise and to establish the cadastral value of land plot determined by the experts of VALRUS, and to close the case.
The new estimated value started to apply since the beginning of 2014, thus, only during one year the adjustment of land tax amounted more than 700 million rub.
To look through the court decision, please, refer to the Arbitration Court web site.