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25.03.2026

Audit of compensation for property damage

The Accounts Chamber conducted a remote audit of the effectiveness of funds from republican and regional compensation funds allocated to compensate property damage to individuals and legal entities in 2023–2024 and the first half of 2025.

From 2023 to the first half of 2025, revenues of 1.4 trillion UZS were formed in the republican fund and 1.9 trillion UZS in regional funds. A total of 3 trillion UZS was paid as compensation to 4,900 property owners.


Of these, 64% (3,142 recipients) received compensation payments based on court decisions.

At the same time, several issues were identified in the allocation of compensation:


– No monitoring system has been established for investment projects implemented on land plots seized for public needs.


As a result, projects have not been implemented or completed on 514 land plots for which 75.4 billion UZS in compensation was paid.


– 23.8 billion UZS was allocated to four facilities not related to the intended use of the Fund’s resources.


– In Fergana and Tashkent regions, 90 valuation reports on demolished real estate and land rights were prepared in violation of standards; 73 of them showed overvaluation based on expert conclusions.


– In some court cases, due to the lack of necessary information from the defendant, compensation payments were made without taking into account land plots already provided to owners as compensation.


For example, in Surkhandarya region, excessive payments were made to two citizens who had already received land as compensation.


– During the reviewed period, 425 demolished real estate objects and land rights were assessed based on owners’ requests in violation of legislation.


– Opportunities to expand fund revenues by accounting for usable construction materials from demolished objects, determining their market value, and selling them were not utilized.

– Due to the failure to terminate property rights on time (for 350 citizens), taxes continued to be accrued on such properties.


– Due to insufficient transfers of funds from local budgets and proceeds from the sale of land rights to regional funds, debts to 213 property owners were not settled.


Based on the findings, a government action plan was adopted to eliminate the identified shortcomings.


– Measures were defined to redirect untransferred funds to regional compensation funds as instructed by the Ministry of Economy and Finance.


– A proposal was submitted to deduct the value of reusable construction materials from compensation payments.


– An online platform (ins-subsidiya.mf.uz) was launched for registering property damage, uploading documents, and facilitating compensation, ensuring settlement of 57 outstanding cases.

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