Zavala Owners Seek Refund or €80 Million Payout
Private ownership spans an additional 68 thousand square meters: Zavala, Photo: Shutterstock
A coalition of citizens known as “Legal Owners of the Zavala Peninsula” has formally requested the Budva Municipal Assembly (MA) to convene an urgent session. This session aims to secure consent for entering a court settlement regarding land disputes involving the reclamation of 68 thousand square meters of property.
They seek the Municipality’s acknowledgment of their ownership in four ongoing cases: three at the Basic Court in Kotor and one at the Higher Court in Podgorica. Additionally, they request compensation for court and legal expenses equal to the amounts determined by the court.
This was outlined in a letter submitted to the Budva Municipal Council on May 19, which “Vijesti” has seen.
The group has been relentlessly pursuing the restitution of nationalized land valued in the tens of millions of euros, located on the eponymous cape near Budva.
In 1958, the state nationalized property belonging to 13 Rafailović families on Zavala. The previous landowners assert that the property was never developed or utilized as intended after its nationalization and subsequent registration with the state and the Municipality of Budva during the new cadastre introduction in 1995. The heirs of these parcels discovered the loss of their ownership only after significant resale transactions worth millions and have been seeking legal recourse since 2007.
Bojana Ćirović, the protector of the property and legal interests of the state, confirmed to “Vijesti” in April that the state of Montenegro is deliberating the matter with the citizens group. She stated that the entire process requires careful verification and will be coordinated with the Ministry of Spatial Planning, Urbanism, and State Property, beginning with a geodetic expert assessment.
The state was registered as the property owner during 1995-1996.
The “Legal Owners of the Zavala Peninsula” mention in their letter that both local and foreign residents have initiated multiple court proceedings against the state and the Municipality to reclaim parcels on the peninsula. Their call for an urgent session stems from concerns over potential adverse effects on the Municipality and its finances.
“According to the timeline of registration submitted in all civil proceedings, and the new documentation received by the Citizens’ Group on March 8, 2025, it has been unequivocally established that the state of Montenegro erroneously registered private property through the Real Estate Administration or the then Property Directorate in a public survey from 1995-1996. They incorrectly applied provisions from the Law on Maritime Property to certain real estate. Aside from cadastral plot 3063, which falls under maritime property, other plots have never belonged to this classification. There are missing decisions regarding registration for specific plots claimed by the Citizens’ Group and plaintiffs, suggesting that the property of private individuals was potentially registered mistakenly and subsequently handed over to the Municipality of Budva,” the letter asserts.
A square meter was valued at 1,010 euros three years ago.
In the ongoing dispute at the High Court in Podgorica, seeking compensation for the seized property, a first-instance judgment was issued in 2022, proposing compensation at a rate of 1,010 euros per square meter. They assert that the upcoming verdict in the Basic Court in Kotor will likely result in an even higher valuation due to updated expert assessments and inflation, which may mandate that Budva pays at least 80 million euros in damages.
“Since the Municipality of Budva is among the defendants, the Municipal Assembly holds the authority to convene an urgent session regarding this draft decision, allowing them to endorse court settlements in this and other cases. For the conclusion of any settlement or recognition of claims, the body representing the Municipality—specifically the Secretariat for Property Protection and its staff—must obtain authorization from the Municipal Assembly for any subsequent actions. The defendant is the state of Montenegro, represented by Ćirović, who has initiated necessary protocols with the Ministry of Spatial Planning. This aims to confirm the factual situation concerning the geodetic evaluation, land identification, and facility expertise, after which it will proceed to address the Government in compliance with protocols specified in the Law on State Property, seeking approval for a court settlement…,” the citizens group emphasized.
Currently, in Zavala, aside from the opulent enclave “Dukley Gardens,” there exists only one temporary facility—a contentious seawater processing plant that is not operational.
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