Court Verdict Announced for LLC Founder Who Caused 178.3 Million UZS Damage Through Illegal Sand and Gravel Extraction
2026-09-02 09:50:00 / News

An open mobile court session was held in the Khavast District Court for Criminal Cases of Sirdaryo Region with the participation of defendant F.Kh., his defense attorney J. Fayzullayev, and Civil Plaintiff — a specialist from the Inspectorate for Control in Mining Industry and Geology. The court thoroughly examined the criminal case against F.Kh., founder of LLC "A", under Part 1 of Article 192-11 of the Criminal Code of the Republic of Uzbekistan.
During the trial, it was established that F.Kh., being a 100% shareholder and founder of LLC "A", abused his official powers in collusion with the company's director. Although the enterprise was issued a permit (type SR 0014 F5, later replaced by SR 0015 F5) to utilize a sand and gravel mixture deposit on a 10-hectare plot in the Babur area of Khavast district, the prescribed legal rules were violated.
According to the court verdict, F.Kh. was found guilty under Part 1 of Article 192-11 of the Criminal Code of Uzbekistan and sentenced to a fine of 100 times the basic calculation amount, totaling 41,200,000 UZS. The material damage of 178,300,000 UZS caused by the enterprise was fully compensated and transferred to the state budget.
According to the case files, LLC "A" submitted 5-GR reports to the State Geological Fund stating that 516,900.0 m³ of sand and gravel mixture were extracted between 2019 and 2024. However, survey measurements conducted by the Inspectorate for Control in Mining Industry and Geology using data from the "Uzbekkosmos" Agency revealed that 584,188.1 m³ were extracted within the designated mining allotment, while 5,844.8 m³ were illegally extracted outside its boundaries.
Expert evaluations and mine surveying confirmed that the unauthorized extraction of 5,844.8 m³ of sand and gravel outside the allotment boundaries caused major damage to state and public interests amounting to 178,300,000 UZS. During the proceedings, the defendant fully pleaded guilty, confirmed full restitution of the damage, and expressed genuine remorse.
Taking into account the nature of the crime, complete compensation for the damage, F.Kh.'s lack of prior criminal record, and his responsibility for three minor children, the court deemed a fine appropriate. The 178,300,000 UZS deposited into the Sirdaryo Regional Prosecutor's Office deposit account was ordered to be transferred to the state budget via the Inspectorate for Control in Mining Industry and Geology.
This judicial decision once again demonstrates that strict compliance with subsoil use legislation is mandatory for every business entity. Exceeding mining allotment boundaries and illegally appropriating state natural resources inevitably result in legal liability and financial losses.
Consistent state supervision in the mining and geological sectors, particularly the integration of modern satellite and survey monitoring technologies, enables the timely detection of violations. This plays a vital role in protecting natural resources and safeguarding the economic interests of the state.
Entrepreneurs and subsoil users must strictly adhere to license terms and mining allotment boundaries while complying with industrial and environmental safety regulations. Upholding legality and the rational use of resources remain the fundamental prerequisites for sustainable development in the sector.
The court verdict has not entered into legal force, and an appeal, cassation complaint, or protest may be filed in accordance with the procedure established by law.
J. Bozorkhonov, Chief Legal Counsel of the Inspectorate
for Control in Mining Industry and Geology.
