Spain lands in court over land grab law

Thousands of British expats who lost out to Spain's notorious "land grab" laws were yesterday given hope of getting their properties back after the European commission took Madrid to the European court of justice.

The commission is to take legal action against Spain over alleged infringements of European competition regulations governing public works contracts. It claims that in Valencia such contracts were awarded without fair competition.

The law, introduced in the 1990s at the start of a prolonged housing boom, allows developers to expropriate rural land from owners if they can persuade the authorities that it is suitable for "urban development". Adding insult to injury, they can then charge the owners for services such as electricity for the new development.

The homes of thousands of British and other owners have been demolished or left worthless by ruthless property developers taking advantage of the law.

Though the law was made by the Valencian authorities, Spain has to answer in court, as it is an EU member and must comply with the bloc's competition rules. If the action is successful it could mean large fines for Spain, and Madrid may put pressure on Valencia to change the law.

Charles Svoboda, vice-president of Abusos Urbanisticos No, a campaign group that has fought the law for the past four years, said: "The commission does not take these actions if it does not intend to penalise the country concerned. It could be the beginning of the end of these laws."

The case claims that public works contracts worth more than €5.5m were awarded to cronies of those who made the contract decisions.

The legal action gives some hope to Britons such as Danny Loveridge, who retired to a 130-year-old farmhouse near the Valencian town of Benissa several years ago. He lost more than £160,000 after developers moved in on his land.

"They took almost 75% of our land and gave us some other land that was worthless," he said. "There is now a bathroom fittings shop where our house was."

Loveridge was paid £8,000 in compensation, but was then forced to pay the developers £12,500 for the electricity, sewage, roads and other infrastructure for a proposed industrial estate.

He was forced to sell what remained of a £260,000 property for about £100,000.

In 2004, a report to the European parliament denounced "serious abuses" committed under the terms of a "surrealistic" land law in Valencia, in eastern Spain, and demanded compensation for thousands of people who had lost homes and money.

No one was available for comment at the Spanish government or Valencian regional government last night.

Full story from www.guardian.co.uk

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