
Newsroom
A building in Nicosia that now operates as a popular banquet and events hall was constructed and opened without the proper permits or approvals, according to a damning report by the Auditor General of the Republic. The case is seen as an example of the widespread loopholes and lax enforcement that plague urban planning in Cyprus.
According to Kathimerini's Apostolos Tomaras, construction on the site began in 2018, and the building was completed in 2020. However, no planning permission or building permit had been issued before or during the construction. To make matters worse, the venue was later granted an operating license in 2023, again, without a final certificate of approval, which is required by law.
The state audit was triggered by public complaints and reveals a series of irregularities spanning five years. The venue, which had originally applied to operate as a banquet hall and later as a film production facility, never functioned as intended under either description. Instead, it has been used for weddings, parties, and concerts, frequently hosting well-known performers and drawing large crowds, despite never meeting the legal requirements for such gatherings.
A timeline of irregularities
- 2018: Construction began without permits. Later that year, an application was submitted for a banquet hall, requesting permission by way of derogation (an exception to the rules).
- 2019: The application was rejected due to violations of the local development plan. The plot lies in an agricultural zone where banquet halls are not allowed. The hall’s size exceeded limits, it didn’t respect boundary setbacks, and it went over the allowable building density.
- 2021: A new application was submitted, this time for a film production facility, also by derogation. Although this version was eventually approved under strict conditions, the building never actually operated as a film venue.
- 2023: The Cabinet gave the green light, despite objections from the Planning Council, based on compensatory measures. These included a "transfer" of building rights from another plot (the “donor” plot), which was supposed to be given to the public. Instead, that land remained in the original owner’s hands.
The Deputy Ministry of Tourism later granted the venue a restaurant license, despite the lack of final building approval—a move the Auditor General said reflects a pattern of improper licensing.
Violations and unanswered questions
The audit found several serious missteps:
- The condition to operate a cinema area (used to justify the derogation) was ignored.
- Unauthorized parts of the building that were supposed to be demolished weren’t.
- No action was taken to properly follow through on court proceedings, even though the Nicosia Prefect had initially filed a case for illegal construction.
- The Planning Authority seemingly overstepped by altering Cabinet-imposed conditions without having the legal power to do so.
Public safety and fair play at risk
The Auditor General warned that this is not an isolated case. The report criticized the failure of authorities to properly enforce planning laws, pointing to a lack of oversight, weak follow-up, and an overall failure to protect the public. Aside from safety risks and wasted public resources, the report noted the potential for unfair competition—since other businesses are expected to comply with regulations.
Despite its patchy legal status, the venue continues to operate normally and host mass gatherings, raising further questions about how much the state is doing to protect the public and ensure fair practices.