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Why Tsarukyan's Property Brings Income to 'Yerevan Wellness'

News | 2026/08/12 23:02

Why Tsarukyan's Property Brings Income to 'Yerevan Wellness'

The city hall admits that the movable property of 'Multi Wellness' does not belong to it

The sports complex that has transformed from 'Multi Wellness' to 'Yerevan Wellness' is already welcoming customers. Except for the café-bar, all other services are operational, but with one difference: the center built by the arrested Gagik Tsarukyan is now managed by the Yerevan City Hall.

At first glance, everything seems the same, but customers are now paying 'Yerevan Wellness'. When asked by 'Azatutyun' whether the payments go to the budget of the Yerevan City Hall, the employee replied, 'Yes.' The city hall's flag is flying at the entrance, and inside, when answering customer calls, they mention the center's new name. It is also reported that in the coming months, the new management will implement updates and prices will increase, but for now, the previous rates are maintained.

Two weeks ago, the mayor of Yerevan announced that the center built by Tsarukyan now belongs to the community. After being closed for several weeks, the center reopened.

The wealthy businessman's property is now effectively generating income for the city hall, but a city hall official responding to 'Azatutyun' noted that although the land and the immovable property built on it belong to the city hall, the movable property inside the center does not belong to them. If it does not belong to them, then why are customers paying not to Tsarukyan's company, but to 'Yerevan Wellness', asks lawyer Yerem Sargsyan.

'The response from the city hall and these actions indicate that the same exercise equipment is being used here, the movable property is being used illegally, and that is the contradiction,' said the lawyer.

The term of the contract with the city authorities was set to expire in 2065. However, the Yerevan City Hall unilaterally terminated it without explanation, taking advantage of one of the contract's provisions when Tsarukyan came under the scrutiny of law enforcement.

'The contract clearly states under what conditions it can be terminated, but there is also a clause that allows either party to notify the other one month prior to termination. Now, the Yerevan City Hall has decided to use that clause,' noted Sargsyan.

The city hall also clarified that it is their right for the landowner to refuse the contract early. Why now, the city hall does not elaborate, especially after Prime Minister Pashinyan's statement about dispossessing Tsarukyan.

Lawyer Yerem Sargsyan, citing the contract between Tsarukyan and the city hall, insists that 'Multi Wellness' did not breach the contract, but it was still terminated early. According to the contract, only the land belongs to the city hall, while Tsarukyan manages the property built on it. In 2065, if the contract were not extended, the buildings constructed on the land would have to pass to the city.

Gagik Tsarukyan, who participated in the elections, had sharply criticized Pashinyan during his campaign, and the latter promised to deal with him. After that, the wealthy businessman was accused of economic crimes and arrested. About 70 of his companies were closed, and 'Ararat Cement' and 'Yerevan Ararat' brandy-wine-vodka factory came under state control.

'There would be no compensation if the term expired, and the property would be transferred according to the obligation. But if you terminate the contract early and take the property, you cannot avoid compensation for damages,' said the lawyer.

The Yerevan City Hall also informed 'Azatutyun' that they do not plan to compensate Tsarukyan. The lawyer considers this another violation. What it comes down to, Sargsyan notes, is that the businessman invests millions of dollars, builds property, expects profit, but the state decides to seize that property without justified reason.

'Multi Wellness' has filed a lawsuit against both the Yerevan City Hall for the early termination of the contract and the Cadastre for the full registration of the construction rights and property of 'Multi Wellness' as the property of Yerevan.

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