The procedure for removing the illegal residential complex in the Baba Alino area near Varna is strictly regulated in the Spatial Planning Act (SPA), but the case is complicated by the scale of the violations, the cutting down of a protected forest and the presence of private buyers.
How will the demolition and removal proceed?
The process is managed by the Varna Municipality. Municipal employees independently describe each of the 104 buildings. Official statements of findings for illegal construction are issued. The Mayor of Varna issues orders for removal under Art. 225 or Art. 225a of the ZUT.
All orders are subject to judicial appeal by the investor and the new owners. The actual demolition can only begin after the court confirms the orders with a final decision.
If the violator does not remove the buildings voluntarily, the Municipality of Varna announces a public procurement procedure for the selection of a contractor. The buildings are demolished mechanized with heavy construction equipment. The contractor is obliged to sort and transport the construction waste to a specialized landfill. Due to the volume of concrete, this will require serious logistics and increased control to avoid contamination of the surrounding forests.
Enhancement and afforestation of the terrain
Since the terrain of over 100 acres is legally a protected forest (part of NATURA), after the concrete is removed, the state will require reclamation - removal of the crushed concrete and the underlying layer from the ground surface, filling in a humus (fertile) soil layer and afforestation. The Regional Forestry Directorate and the State Forestry will coordinate the planting of new tree species compatible with the local ecosystem in order to restore the destroyed forest fund.
Who bears the financial costs?
The law is categorical that the financial burden falls entirely on the perpetrator. Since the investor is unlikely to demolish the complex voluntarily, the Municipality of Varna will initially pay for the demolition and removal from its budget. The Municipality will then demand all the funds spent from the offender through legal means. The main responsibility for the costs lies with the investor "KUB Corporation" and its owner Oleg Nevzorov.
The affected citizens who have already purchased properties with notarial deeds risk losing their investments without direct compensation from the state. They will have to conduct lengthy private lawsuits against the investor to get their money back.
There is a huge risk that a large part of the costs will ultimately remain at the expense of Varna taxpayers, although the law provides for mechanisms for shared financial responsibility. If the investor “KUB Corporation“ of Oleg Nevzorov refuses to pay (or the company is deliberately bankrupted and drained, which is a widespread practice in our country), the chain of financial responsibility and the real consequences will proceed as follows:
Who else is financially liable by law?
According to Art. 225a, para. 5 of the ZUT, the forced removal of illegal sites is at the expense of the perpetrator, but the law introduces joint and several liability. Since some of the properties (houses and apartments) have already been sold and transferred to individuals with notarial deeds, according to Bulgarian law, the owner of the land and buildings is a co-contractor.
Thus, the municipality has legal grounds to make financial claims directly to the citizens who bought in the complex for the removal of their own buildings.
If the complex had an official construction supervisor or external contractor (different from the investor company itself), they are also jointly and severally liable if they allowed the construction to continue after suspension orders.
What if none of the parties pays voluntarily?
Based on the effective removal order and the invoices from the company that demolished the buildings, the Municipality issues a writ of execution against “KUB Corporation“ and its managers. A public or private enforcement agent (PEA) imposes garnishments on bank accounts, company shares, and other company assets.
Why can Varna taxpayers foot the bill?
The problem is in the practical collection of the amounts, which in such cases is often close to zero, for several reasons. “KUB Corporation“ (or the related company “Forest Club Varna“) can easily be transferred to propertyless persons or declared bankrupt. When the company's accounts are empty and it has no other assets, the Municipality has nothing to confiscate. The owner is a foreign citizen. According to the investigating authorities, the owner Oleg Nevzorov has seizures and cases for being an incorrect payer, and as of the end of May 2026, there is evidence that he may have left the country. This makes his personal pursuit and the collection of millions of leva from him practically impossible.
The social absurdity with the buyers
If the Municipality decides to take the money from the misled buyers (citizens), this will lead to enormous social tension. These people have already lost their savings for the purchase of a property and it is unlikely that they will be able to pay tens of thousands of leva for its demolition.
The end result
Since the law obliges the Municipality to first remove the dangerous and illegal site, the city hall will pay the millions of leva for excavators, removal and afforestation in advance from the municipal budget. If after years of litigation it turns out that Nevzorov's company is an empty shell, these funds will remain entirely at the expense of the budget of the city of Varna – money that would otherwise go to street repairs, kindergartens and public works.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found at imot.bg