Eight years after construction work began at Prince Luxury Events in Lymbia, Nicosia district, planning violations remain in place, according to a new report by the Audit Office, despite interventions by the competent authorities.
The reception venue attracted public attention in April 2025, when the Audit Office published its previous report. At the time, the owner publicly responded to the findings, claiming that all the necessary permits had been obtained legally and without interference.
In its latest memorandum, which examines developments since the previous report, the Audit Office concludes that the state continues to struggle to enforce the law effectively.
The premises continue to operate in breach of key conditions attached to their permits, while the authorities have limited their response to issuing warnings, with no evidence of fines being imposed or further court action being taken.
Court case withdrawn
One of the most significant new findings concerns the outcome of court proceedings filed against the owner in 2018.
The previous report had recorded that construction work began without the necessary permits and continued despite a court order to halt it. Construction was completed in 2020, even though the first application for planning permission had been rejected.
At the time, the final outcome of the court proceedings had not been clarified. However, the new memorandum states that the Nicosia District Administration informed the Audit Office that the case concerning unauthorised construction and disobedience of a court order was withdrawn on the instructions of the Nicosia District Officer, following the issuance of a building permit in 2023.
The Audit Office expresses serious concern over this development, arguing that such practices weaken the law, as obtaining a permit retrospectively may allow individuals to avoid the consequences of earlier violations.
Further warnings but no effective enforcement measures
In May 2025, the Minister of Interior rejected the owner's appeal against an earlier enforcement notice, upholding the decision of the Planning Department.
In October 2025, the Nicosia District Local Government Organisation (EOA) subsequently issued a new notice requiring the reception venue to restrict its operations to the approved areas. It also warned that failure to comply would result in fines or court action.
However, the Audit Office found that no substantial measures were taken beyond the issuing of notices.
An on-site inspection in April 2025 also confirmed that unauthorised structures and alterations to the approved areas remained in place, while the required work in the outdoor areas had not been completed.
Six applications and another attempt to obtain permits
According to the Audit Office, a total of six planning applications relating to the development have been submitted since 2018.
In November 2025, the EOA decided to reject two applications concerning changes to the original permits, citing the operation of the reception venue beyond its approved areas.
However, a new application was submitted on 21 November, seeking permission to use the premises as a music and dance venue, legalise some of the unauthorised structures and install folding partitions in the indoor areas.
The Audit Office notes that the repeated submission of new applications has resulted in the reconsideration of conditions previously imposed by the Council of Ministers, including the demolition of unauthorised structures and the use of part of the premises for film productions.
The process was also delayed by a disagreement between the Planning Department and the EOA over which authority was responsible for examining the applications. The issue was resolved in July 2025 following intervention by the Ministry of Interior.
EOA expresses conditional support for latest application
Despite the outstanding issues, the EOA told the Audit Office that in May 2026 it had forwarded a favourable opinion, subject to conditions, on the latest application to the Council for the Study of Derogations. This does not mean that final approval has been granted.
The organisation maintains that it acted in accordance with the law and says the area designated for film-related activities has previously been used for filming. It also acknowledges, however, that the existing legislative framework has weaknesses when it comes to enforcing measures.
The Audit Office insists that the examination of new applications cannot be used as a justification for failing to address existing violations.
It also points out that the premises continue to operate without a certificate of approval, meaning that compliance with public health and safety requirements is not ensured through the prescribed procedure.
The Audit Office concludes that tolerance of such cases creates unequal competition and undermines public confidence in the state.
