Last update - 00:00 16/12/2007
Administrative court nixes Ikea plan for Rishon Letzion branch
By Guy Lieberman, Haaretz Correspondent
A Tel Aviv Administrative Court judge ruled Sunday that the international furniture chain Ikea will not be permitted to open its planned branch store in Rishon Letzion.
According to Judge Nurit Ahituv's decision, the tender which the company won to lease the land on which the store is to be built is nullified due to irregularities in the bidding process.
Achitov's ruling comes in response to a petition filed by local business owners and residents against the Israel Lands Administration and the Rishon Letzion municipality. The plaintiffs argued that the leasing tenders of lands in southwest Rishon Letzion are unlawful.
"Ikea Israel's tender offer was formulated after receiving guarantees in the form of favorable economic terms unavailable and unbeknownst to contending bidders. Under these conditions, the foremost principle of fair competition on a level playing field has been violated," Ahituv wrote. "In their actions, both the Rishon Letzion municipality and Ikea Israel operated in contravention of the rule of law."
The ruling joins a similar decision passed down by Tel Aviv District Court, which upheld a petition against the building of the furniture store and struck down a municipal committee's building and construction plans.
Ikea aimed to build its second branch in Rishon Letzion as part of a plan to expand its operations in Israel. It currently maintains its flagship store in Netanya.