Egypt State Council’s Appeals Department decided Wednesday to refer the appeals filed by a former member of parliament Hamdy El-Fakharani challenging the validity of Madinaty’s new contract to Supreme Administrative Court on 16/04/2013 session.
El-Fakharani said the Appeals Department’s decision is a positive signal noting that the report made by the State of Council Commissioners has recommended the court to support the invalidity of Madinaty’s new contract.
Madinaty’s new contract had been inked on November 18, 2010 by New Urban Communities Authority (NUCA) and Talaat Moustafa Group Holding – TMG – (TMGH.CA) that owns the development.
Under the inked contract, the government’s stake in the project amounts to 7% of residential units that are currently estimated at around EGP 15.5 billion.
It is worth noting that Supreme Administrative Court’s Contracts Department issued a rule supporting the validity of Madinaty’s new contract .
Eng. El-Fakharani, former presidential candidate Khaled Ali and Wael Saeed have lodged an appeal challenging the validity of Madinaty’s new contract.
Shares Bloom:
Talaat Moustafa Group Holding (TMGH)’s shares soared 3.67% during midday session to EGP 4.52 backed by the Appeals Department’s decision to adjourn the hearing of the appeal challenging the validity of Madinaty’s new contract till April 16th.
