The Armenian Prosecutor General's Office has requested that the Anti-Corruption Court seize over twenty properties and other assets worth approximately AMD 230 million (US$637,000) from former Deputy Yerevan Mayor Karen Davtyan and individuals connected to him.

The legal action targets allegedly illicit funds and an additional AMD 124 million that prosecutors claim cannot be justified by Davtyan's lawful income.

The court has accepted the case under Armenia's ongoing crackdown and legal mechanisms to nationalize or recover assets of illegal origin. In addition to his role as deputy mayor, Davtyan previously served as the deputy head of Armenia's State Committee of Real Estate Cadaster.

Davtyan was one of the founding shareholders of Pallada Tsaghkadzor LLC, a company constructing a controversial multifunctional complex in the Armenian resort town.

The company purchased a Soviet-era youth camp in the town in 2022 and soon began construction on the $45 million premium residential and commercial complex.

Hetq, in a 2023 article $45 Million Tzaghkadzor Project: Government Patronage at Play?, revealed that construction began before the company secured an official work permit.

The project drew intense public scrutiny due to alleged political connections.

Specifically, an individual named Edgar Avagyan, who reportedly had no prior experience in the construction sector and had previously declared bankruptcy, was revealed to have a financial interest in the development.

Avagyan is the godfather to the son of high-ranking political figure Alen Simonyan (former Armenian parliament speaker), leading to allegations of backroom dealing and state patronage.