Elche Council seeks 620,000 euro from L’Aljub landowners following decades of legal disputes

The development of Sector E-7 in Elche, the site of the L’Aljub Shopping Centre, continues to be a source of significant administrative and financial headaches nearly thirty years after it began. Elche Council is currently attempting to recover more than 620,000 euro from the current owners of the land, while also demanding 36,000 euro from the development company for payments made in error.

The complex history of the site dates back to 1997 when the Partial Plan and Reparcellation Project were first approved. At the time, the company Erosmer Iberica was appointed as the developer. However, the project’s legal foundations were shaken in 2003 when the High Court of Justice of the Valencian Community declared the municipal agreement null and void. This decision was eventually upheld by the Supreme Court in 2008 following years of appeals.

By the time the legal challenges reached their conclusion, the infrastructure work required for the shopping centre had already been completed. Despite this, the original landowners did not pay the development fees requested by the company. The developer subsequently urged the local government to collect these fees through a forced process, but the Council failed to act. The courts later noted that a developer cannot issue such charges without a prior formal agreement from the administration, leaving the situation in a legal limbo.

In 2007, Erosmer was absorbed by Cecosa Hipermercados, which inherited all rights and obligations for the sector. Following decades of claims for unpaid construction costs, a 2023 ruling—confirmed in early 2024—ordered Elche Council to pay Cecosa 404,237.63 euro for outstanding works.

The financial burden grew significantly due to legal interest applied from December 2006. By June 2024, the Council paid a total of 664,072.47 euro to Cecosa, a figure that includes over 259,000 euro in interest. The local administration is now seeking to pass these costs onto the current landowners. Additionally, the Council has identified a payment of 36,000 euro made to the developer in error, which it is now fighting to reclaim.