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On Protection of Private Property and Guarantees of Owners’ Rights in Uzbekistan

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The institution of private property is one of the key elements of the rule of law and a market economy. The Constitution of the Republic of Uzbekistan enshrines the principle of the inviolability of property, and the Law “On the Protection of Private Property and Guarantees of Owners’ Rights” (hereinafter – the Law) develops and specifies its provisions. This normative act is of fundamental importance for regulating property relations, protecting the rights of citizens and legal entities, as well as shaping the country’s investment attractiveness.

According to Article 2 of the Law, the right of private property is defined as the right of a person to own, use and dispose of property acquired in accordance with legislation. An important provision is the absence of restrictions on the quantity and value of property held in ownership, as well as the recognition of the perpetual nature of this right (Article 5).

Thus, the legislator establishes not only the legal guarantee of the inviolability of property but also its economic foundation, ensuring the free development of property relations.

State Guarantees and Protection Mechanisms

The Law provides for a wide range of methods for the protection of property rights (Article 8): recognition of rights, restoration of the situation existing before the violation, self-defense, compensation for damages, compensation for moral harm, state registration, etc.

Special attention is given to the priority of the owner’s rights in relations with state authorities (Article 7), which reflects the principle of the rule of law. All irreconcilable contradictions in legislation are interpreted in favor of the owner, thereby strengthening the guarantees of his rights.

Prohibition of Unlawful Interference

The Law explicitly prohibits interference by state bodies and officials in the economic activity of the owner (Articles 12–13). This prohibition is systemic in nature, as it is directed against the practice of “corporate raiding” and other forms of pressure on business.

Moreover, losses caused by unlawful actions of state bodies are subject to full compensation, including recovery from the officials responsible (Article 14).

Guarantees in Case of Property Seizure

The Law sets strict conditions for nationalization, requisition, and confiscation of property (Article 17): they are possible only in cases expressly provided for by law, with mandatory full compensation of market value and incurred losses.

Special attention is devoted to guarantees during the seizure of land plots and the demolition of real estate objects (Article 19). The Law requires prior notification of the owner, notarization of compensation agreements, as well as an independent valuation of the property.

Inadmissibility of Reviewing Privatization Results

A significant guarantee is the provision on the inviolability of the results of privatization (Article 24). This rule has an investment nature, as it excludes the possibility of revising decisions adopted during the denationalization of property.

International Legal Aspect

Article 3 of the Law establishes that if an international treaty sets rules other than those provided by national legislation, the norms of the international treaty shall apply. This strengthens the protection of the rights of foreign investors and ensures compliance with international standards.

The Law “On the Protection of Private Property and Guarantees of Owners’ Rights” is a system-forming act in the field of property relations in Uzbekistan. It ensures a balance between the interests of the state and individuals, secures guarantees of property inviolability, provides protection mechanisms, and sets strict requirements for state interference in the property sphere.

Given modern challenges — digitalization of the economy, growth of foreign investment, urbanization, and land reform — further improvement of legislation should be aimed at strengthening judicial protection, developing alternative dispute resolution methods, and increasing the transparency of state decisions.

Owners’ Rights and Guarantees in Uzbekistan

Category

Owner’s Right / Guarantee

Commentary

General Rights

Ownership, use, and disposal of property

Full scope of powers to manage property without limitation on value or quantity

 

Perpetuity of property rights

Establishing ownership without time limits

 

Equality of conditions for all owners

Exclusion of discrimination and preferential treatment

 

Judicial protection and restoration of violated rights

Damages are compensated in full

Guarantees in Relations with the State

Priority of the owner’s rights in legal interpretation

All irreconcilable contradictions are interpreted in favor of the owner

 

Prohibition of unlawful interference by authorities

Any pressure or imposed conditions are prohibited

 

Prohibition of encroachment on property

Covers direct and indirect restrictions, raiding practices

 

Compensation for losses caused by authorities

Responsibility lies with both state bodies and officials

 

Right to appeal decisions of state authorities

Complaint may be filed with court or higher authority; no state duty is charged

Means of Protection

Recognition of ownership rights

Judicial confirmation of rights

 

Prevention of violations and self-defense

Proportionate self-defense is permitted

 

Recognition of acts and transactions as invalid

Judicial annulment of acts violating rights

 

Compensation for damages and moral harm

Full set of property and non-property remedies

 

State registration of rights

Ensuring legality and stability of transactions

Guarantees in Case of Seizure

Seizure allowed only under law

Exceptions strictly provided by law

 

Nationalization, confiscation, requisition — only with compensation

Mandatory market-value compensation and reimbursement of losses

 

Termination of rights to prohibited property

Reimbursement of property value

 

Seizure of land plots and demolition of real estate — only with compensation

Six-month notice, independent valuation, notarized agreement

Special Guarantees

Recovery of property from unlawful possession

Vindication claim, assistance of state authorities

 

Protection from violations not involving dispossession

Claim for elimination of obstacles

 

Compensation for losses caused by restrictive laws

The state compensates damages

 

Prohibition of retroactive effect of laws worsening the owner’s position

Guarantee of stability of rights

 

Inviolability of privatization results

Prohibition on revising or annulling denationalization outcomes

 

Equality of rights of foreign citizens and stateless persons

Protection of investors’ rights

 

Our address
26, Passage 2, Tarakkiyot Street,
Tashkent city, Uzbekistan
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