- Cyprus Property News Magazine - http://www.news.cyprus-property-buyers.com -

Failure to pay property fine prompts liquidation order

THE FAMAGUSTA district court has ordered the winding up of the property development company, K & M Famagusta Developers and Construction Ltd, after the company was deemed “unable to pay its debts”.

The liquidation order was issued upon the failure of the company to comply with previous court decisions regarding a claim by one of the company’s customers that she was owed €50,000 by the company. Famagusta Developers has had several problems since it was set up in 2005 and was struck off the Contractor Registration and Oversight Council twice.

In September 2010, it was found guilty of breaching its contractual agreement with a British couple for a house in the Famagusta district. It was ordered to pay the couple €100,000.

The company’s director, Kypros Kyprianou was placed on the stop list and faced charges of fraud. This was just the latest of several other run-ins with the law.

According to the daily newspaper Politic, the applicant had paid Famagusta Developers €50,000 as a down-payment for an apartment in Paralimni that was eventually never built.

Despite the breach of contract, the company had refused to return the money to the woman.

The company was found guilty on December 6, 2010 and was instructed by a court order, issued on February 12, 2011 to repay the amount within three weeks from the decision.

When the company failed to do so, the applicant subsequently filed for a liquidation order against the company. There are several other suits against the same company for similar cases while there were also other liquidation applications pending against the company.

Kyprianou spent most of the 1990s in prison for fraud offences after his company, Kyprianou Estates, which operated throughout the 1980s, was reported for selling the same property twice.

He fled the island before the police investigation was complete but was arrested in Germany and extradited to Cyprus where he was jailed. He was released in 2000 before later setting up Famagusta Developers.