Half-built Tashkent residential block trapped by loan lien; builders jailed, buyers desperate

Seven or eight years ago, people were left stranded when their homes were demolished under compensation schemes and they never received the promised money. Today, a new wave of despair is spreading across social media: citizens who paid in full for new apartments yet have received neither their homes nor their money back.

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One such case has emerged in Mirzo Ulugbek district. Buyers who invested in System Metall Stroy LLC’s “Prestige” project have reached the end of their patience – construction remains unfinished and the builders are in detention.

Guzal Ernazarova, one of the buyers, explained that at the very moment a criminal case was opened against the developers and the building was already under restriction, the company took out a large loan using the property as collateral:

“In 2021 we paid the last of our money for an apartment in the multi-storey building on Quva-9 Street in Mirzo Ulugbek district. Almost five years have passed since then and we still have no home.

“Our case is not moving forward in court, nor at the Prosecutor General’s Office, nor at the Ministry of Internal Affairs. We keep going from office to office asking about progress. The indictment was announced on 18 August 2025, the investigation was declared complete, and we went to the ministry to sign the documents. But since then the case has still not reached court. On 15 August 2024 the builders took a 2.5 billion UZS loan from the Uchtepa branch of Infinbank. That money was never used to finish our building. They obtained the loan by pledging a building that was already under restriction, and according to the authorities there is no criminal element in either the loan issuance or the actions of the officials who approved it. They mortgaged a building worth 91 billion UZS for just 2.5 billion – without anyone’s consent.”

According to the affected buyers, they were never informed during the investigation that the building had been encumbered because of this loan.

In the current situation, a rehabilitation (sanation) procedure has been applied. Sanation is a legal process aimed at restoring the company’s operations and completing the project. A court-appointed temporary manager oversees construction in the interests of the clients, giving them a chance to finish the building at their own expense. The buyers are ready and willing to do so, but the lien placed on the property is blocking progress.

“Our building is 70–80% complete. It needs only a little more time and money to finish, and we have the funds. All the families are ready to pool money to complete it. We are stunned that anyone is opposing this. So many families are facing life on the street,” said Zulfiya Mutalova, one of the victims.

“The Ministry of Internal Affairs has placed a restriction on our building. We are not criminals; we haven’t stolen anything. We are simply demanding our own homes. This building has 147 apartments – that’s not 147 people, it’s 147 families, more than 1,000 human beings. The restriction was imposed at the bankers’ request; they want to put the building up for auction, take their percentage, and leave us homeless. We have endured this ordeal for over four years,” added Taisiya Fatiyanova.

“Monkey business”

Some families with no other options have already been forced to move into apartments without windows, running water, or basic amenities because they sold their previous homes to pay for these units. Despite repeated appeals to complete the buildings before the harsh winter sets in under the sanation procedure, their requests remain unanswered.

“I earn UZS 5–6 million a month; 2–3 million goes on rent. I’m barely making ends meet. The reason I haven’t moved in yet is the winter – I have a small daughter and don’t want her to catch cold. If nothing changes after winter, I will have no choice but to move my family into the building in its current state. I recorded this video out of sheer desperation. We are left begging for help from the esteemed President or from PM Abdullla Aripov,” said Umidjon Mullajonov.

There are also reports that some apartments were sold to multiple buyers.

Investigation against the company

According to information verified by Kun.uz, a criminal case has been opened against officials of System Metall Stroy LLC and investigative measures are ongoing. The indictment available to the editorial team states that between 2021 and 2024 company officials fraudulently obtained a total of 91.29 billion UZS from 134 clients through 161 contracts.

An investigation lasting more than a year, restrictions on the properties, a questionable mortgage arrangement, and apartments sold multiple times – all these factors have fuelled the buyers’ justified outrage.

Were there no permits for the building?

Kun.uz inquired about the documentation for the residential complex with the Construction Inspectorate.

According to the information provided by the Inspectorate, all necessary permits were in place. Specifically, SILVERSTONE PROJECT LLC, acting as the client, registered the construction of a seven-storey, seven-block residential building on 17 February 2022 under application No. 46879755.

Bottomless pit

The construction company is on the brink of bankruptcy, its owners are in prison, and the unfinished building is pledged as loan collateral – the problems are so numerous and intertwined that the victims are wandering in despair, unsure where to seek salvation.

Their only demand, the sole hope they cling to, is to gain possession of their homes as quickly as possible.