Uzbekistan insists on the prompt introduction of escrow accounts to protect homebuyers' funds

Against the backdrop of several incidents involving construction companies, including cases of housing delivery delays, non-return of funds to buyers, and criminal cases against developer management, the National Committee on Urbanization has called for accelerating the implementation of the escrow account system.

This system is designed to guarantee the safety of funds invested by citizens in apartment construction. Representatives of the agency emphasized the inadmissibility of a situation where people who have invested money in purchasing housing are left without the promised apartments or the ability to receive a refund of their funds.

To minimize such risks, a draft law 'On participatory construction of apartment buildings and other real estate objects' is currently being considered in the Legislative Chamber of the Oliy Majlis, which provides for the introduction of escrow accounts.

It was planned that this mechanism would be introduced in 2025. According to the presidential decree, starting from January 1, 2026, all payments from participants should exclusively pass through escrow accounts; however, this requirement did not come into effect because its implementation required the adoption of a corresponding legislative act. In July 2026, the Legislative Chamber adopted this bill in its first reading.

The proposed mechanism involves placing buyers' money in specialized bank accounts, and the transfer of these funds to the developer will only occur after certain conditions have been met. This should help reduce the probability of fraud and misuse of citizens' funds.

Furthermore, the system allows for the involvement of another developer if serious difficulties arise in implementing the project. Thus, even if the first construction company cannot fulfill its obligations, there will be a way to complete the construction.

The Committee believes that the foundations of housing construction must be built on the protection of buyers' funds, the fulfillment of obligations by developers, and ensuring transparency for all market participants. The introduction of escrow accounts, according to the agency, is a critically important step to prevent crises and restore public trust in the housing market.

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podrobno.uzOctober 27, 11:19

Uzbekistan plans to introduce digital control to verify the authenticity of discounts and promotions

Uzbekistan is considering introducing a digital system to monitor advertising promotions and discounts. The goal of this initiative is to allow consumers to independently verify the true extent of price reductions and the conditions stated in promotional offers.

The need for such measures arose after the Competition Committee discovered 65 instances of violations during the inspection of 116 promotions across 58 retail outlets. Among the recorded incidents were cases of failure to provide prizes worth 60 million soms, the return of a car following agency intervention, and the provision of discounts valid only when purchasing on an installment plan.

Examples of Violations Found

In the Andijan region, the company Water Life Mineral failed to provide promised prizes totaling 60 million soms to three participants of the 'Orzu ushalsin' promotion. The Committee initiated a case, recognized the violation of consumer rights, and issued a warning to the company.

In the Namangan region, the company 'Namangan Avtotekhkhizmat' canceled the winnings of a participant in a Chevrolet Cobalt draw and transferred the car to another person, citing an inability to contact the winner due to a phone number error. Following the committee's intervention, the car was returned to the rightful owner.

Violations were also found during sales events. At the Baldini store in Namangan, 50% discounts were advertised, but the corresponding price tags on the goods were missing. At the IDEA store in Bukhara, customers were offered discounts from 20% to 60%, but these discounts were applied not to the full price of the item, but only to monthly payments when purchasing on an installment plan.

In the Samarkand region, the company 'Samarkand Avtotekhkhizmat' promised to provide household appliances as a gift when purchasing a Chevrolet car. However, only clients who paid for the car in full immediately could receive this gift; clients who chose an installment plan, as well as legal entities, were excluded from participating in the promotion. The Committee established violations of advertising requirements, retail trade rules, and consumer protection legislation, issuing a mandatory directive to the company.

In the Kashkadarya region, questions arose regarding the advertising of IDEA promotions concerning smartphone sales on an installment plan. The advertising materials did not specify how many items participated in the promotion, what their minimum prices were over the last 30 days, or exactly which item the buyer could receive under the '1+1' offer.

Inspection Results and Control Plans

According to the committee, 90.7% of the 65 identified violations, which is 59 cases, were rectified after companies received clarifications and warnings. Cases were initiated against four enterprises. As a result of actions in favor of buyers, the amount of approximately 250 million soms was recalculated.

To strengthen supervision over compliance with established norms, the agency is developing proposals for integrating digital tools. It is planned that buyers will be able to use a QR code scanner located near the product to find out its original price and check the actual discount amount.

Furthermore, it is proposed to introduce a requirement for mandatory prior submission of promotion terms into a specialized electronic system and to maintain digital records of price changes. This will ensure the ability to compare advertising promises with real sales conditions and help identify situations where the declared discount does not match reality. Currently, these measures remain at the stage of proposal development.

podrobno.uzOctober 20, 17:06

Suspension of Contribution Payments to Management Companies in Uzbekistan for Failure to Submit Reports

Management organizations of apartment buildings in Uzbekistan are required to submit quarterly reports on all revenues for each serviced building. If such reports are not submitted, the accrual of mandatory contributions will be temporarily suspended until the identified violation is rectified.

Reporting Requirements and Control

Sherzod Khidoyatov, Deputy Minister of Construction and Housing and Communal Services of Uzbekistan, announced this during a meeting while answering a deputy's question. He specified that all necessary reports must be uploaded to a special billing system, and the data must be separated individually for each apartment building. This regulation serves to monitor the financial flows of management structures and their accountability to residents.

Furthermore, at the same meeting, representatives of the relevant department detailed the control system for the activities of management companies. According to the information presented, if any organization violates the rules for managing apartment buildings three times within one year, the inspection has the right to exclude that company from the relevant register.

It should be noted that 45 organizations have already been excluded from the electronic register of apartment building management bodies this year.