HG Budvanska Rivijera will owe Podgorica’s company Zetagradnja over four million euros for land sold in Petrovac fifteen years ago.

This decision was reached by the Court of Appeals, as accessed by “Vijesti.”

“HG ‘Budvanska rivijera’ appeal is dismissed, and the Commercial Court’s verdict is upheld,” learned sources from that court stated.

The ruling partially favored “Zetagradnja,” confirming the termination of the real estate purchase agreement validated by the Basic Court in Cetinje on June 24, 2010.

“The claim is accepted, and HG Budvanska rivijera must pay Zetagradnja precisely 2,164,066.56 euros, inclusive of statutory default interest from the date the judgment is finalized, under the threat of enforcement,” the ruling indicated.

Earlier this March, the Supreme Court accepted “Zetagradnja’s” appeal while overturning last September’s ruling by the Court of Appeals that favored HG “Budvanska rivijera.” The Court of Appeals also dismissed the claim from businessman Blagota Radović, demanding the largest state-owned hotel company pay 2.1 million euros in compensation due to the contract’s termination, along with interest.

The new ruling, in addition to the principal of 2.1 million euros, will block Budvanska Rivijera’s account for further interest, as reported by “Vijesti.”

This substantial collection comes right in the peak season, when the hotel company faces its highest financial expenditures, raising concerns about potential impacts on operations, despite it recently achieving record profits.

The Commercial Court affirmed the termination of the 2010 contract between “Zetagradnja” and HG “Budvanska rivijera” concerning the land sale in Petrovac, compelling the hotel group to pay considerable damages.

On June 19, 2010, the Podgorica firm acquired the land and building of “Budvanska rivijera” in Petrovac for 2.8 million euros at a public auction—900,000 euros above the starting price. The plot covers 4,430 square meters and hosts an aged school building spanning 652 square meters. Previously reported by “Vijesti,” the decision to sell the Petrovac plot to “Zetagradnja” was made by the Board of Directors of HG “Budvanska rivijera” led at the time by Svetozar Marovic.

However, following the transaction, Radović’s company lodged a lawsuit, causing the Basic Court in Kotor to validate the request to declare the contract with “Budvanska rivijera” void. This determination was later affirmed by the Podgorica High Court, yet in subsequent proceedings, the validity of the contract concerning 816 square meters of the land was partially negated, returning it to its original owner through restitution. The planning document allowed for the construction of three buildings: one ground floor and four additional floors.

“Zetagradnja” contended that completing the planned project is unfeasible, as the restituted plot lies in the center of the purchased land.

Legal representatives from “Budvanska rivijera” opposed this construction expertise, fearing it would prolong the proceedings, but the court rejected their stance.

“Budvanska rivijera” has consistently argued that at the time of selling the disputed plot, there were no restitution records, asserting that locals were entitled only to compensation, not property return.

“The contract was executed in 2010 following a legal process conducted by the Auction Commission under the Privatization Law, based on the guidelines of the Privatization Council of the Government of Montenegro. At that period, the property in question was listed in the real estate register without restrictions or restitution records. The former owners’ requests were unknown to the contracting parties, implying that “Budvanska rivijera” acted with full diligence during the agreement. However, the previous owners subsequently filed a lawsuit against both “Zetagradnja” and “Budvanska rivijera,” arguing that a section of the contract related to approximately 816 square meters due for restitution should be declared null and void, which the court accepted, leading to a part of the contract being annulled,” previously communicated “Vijesti” about “Budvanska rivijera.”