Court freezes lease of church property in Jerusalem to right-wing group

In a dramatic ruling, the Jerusalem District Court has blocked the long-term lease of church properties in Jerusalem’s Old City to a right-wing Jewish organization, overturning previous rulings and accepting a request for retrial, Hebrew-language media reports.

Israel’s top court had given final approval on June 11 to the 2004 lease of three buildings located in East Jerusalem’s Old City to businesses linked to the Ateret Cohanim organization, which seeks to increase the Jewish presence in Palestinian-majority areas of the capital.

The Imperial Hotel at the Jaffa Gate, the lease to which was sold to the right-wing Ateret Cohanim organization and is the subject of an appeal by the Greek Orthodox Patriarch. (Shmuel Bar-Am)

The Greek Orthodox Church in August filed a new lawsuit against the pro-settlement group in a bid to overturn the ruling, claiming it had “clear proof” of corruption in the long-disputed lease of several Old City properties, including two Palestinian-run hotels.

The deal made Ateret Cohanim the owner of the majority of properties located between the Old City’s Jaffa Gate and the entrance to its Arab market.

The purchase of 99-year leases through three front companies had triggered Palestinian anger and led to the 2005 dismissal of Patriarch Irineos I.

But the Israeli court has now canceled the previous rulings since the front companies, listed in the Virgin Islands, did not file a defense against the church’s new allegations.

The court also orders those firms to pay court fees totaling NIS 50,000 ($14,400).

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