First setback for justice in the Milan urban planning scandal: all defendants acquitted

A Milan court on Tuesday acquitted the eight defendants involved in the first case tried as part of a wide-ranging urban planning investigation that has paralyzed numerous real estate projects in Italy's economic capital.

The case concerned the construction of an 87-meter-high building, authorized through a simple renovation permit rather than a full building permit. This case arose within the context of a policy of accelerating administrative procedures implemented by the Milan municipality during a period of strong real estate market expansion.

The prosecutors argued that the project should have been subject to a standard building permit, which would have involved more thorough inspections, a longer process, and higher costs for the developers. They sought convictions for all the defendants, with sentences of up to two years and four months in prison.

The court's decision represents a significant victory for the property developers involved, as well as for the Milanese municipal administration, whose urban planning practices are being examined in several separate proceedings.

This case is just the first of a dozen criminal cases linked to urban development in Milan. The investigations have created considerable uncertainty in the construction sector and contributed to slowing down or blocking several real estate projects in the city.

The investigations focus in particular on the use of simplified procedures to approve certain large-scale real estate projects. The magistrates are seeking to determine whether these mechanisms were used in accordance with the law or whether they allowed for the circumvention of certain regulatory requirements.

The acquittal handed down on Tuesday could influence other ongoing proceedings, even though each case will be examined separately. This initial ruling is nevertheless seen as a strong signal in a scandal that has deeply shaken Milan's real estate sector and fueled the debate on urban planning regulations in Italy.