Finance
Italian court frees city councillor arrested in Milan property probe
Published by Global Banking and Finance Review
Posted on August 15, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 15, 2025
2 min readLast updated: January 22, 2026
A Milan court released a city councillor amid a property probe, impacting the local real estate market and halting construction activities.
MILAN (Reuters) -A Milan court freed a city councillor and two other local figures who had been placed under house arrest for alleged fast-tracking of planning permits, as part of investigations that have led to a construction freeze in Italy's financial capital.
According to a closed-door ruling issued late on Thursday and reviewed by Reuters, an appeals court commuted the three arrests to one-year bans on professional activity and in dealing with government offices.
Giancarlo Tancredi, a member of the Milan city council, resigned from his post after the prosecutor's office filed requests for his arrest on July 16. His lawyer did not reply to a request from Reuters for comment about the latest court decision.
Tancredi and five others involved in the alleged scandal had been arrested on July 31. They all are still under investigation and deny any wrongdoing.
The appeals court previously released on August 12 two other suspects in the investigation, a builder and an architect, without imposing any other restrictive measures.
The court is expected on August 20 to examine the appeal of the sixth suspect, the head of real estate firm Coima, who is currently under house arrest.
Coima, one of Italy's biggest developers, issued a statement "taking note" of the measure against its founder Manfredi Catella, and said that, in response, the powers of other board members had been expanded to ensure business continuity.
The Milan property market began booming in 2015, when the Expo international exhibition helped to transform the city into a hot spot for developers from Italy and abroad.
But complaints from local residents objecting to a sharp increase in multi-storey buildings triggered investigations into alleged abuses in the fast-tracking of building permits, stalling construction activity.
(Reporting by Emilio Parodi, editing by Joshua McElwee, William Maclean)
A planning permit is an official approval required to carry out construction or development projects, ensuring compliance with local zoning laws and regulations.
House arrest is a legal penalty where an individual is confined to their residence instead of being incarcerated in a jail or prison.
A construction freeze is a temporary halt on building activities, often imposed by authorities during investigations or due to regulatory concerns.
An appeals court is a higher court that reviews decisions made by lower courts, ensuring that legal procedures were followed correctly.
Urban development refers to the process of improving and expanding urban areas, including infrastructure, housing, and public spaces.
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