By Claudia Cristoferi and Emilio Parodi
MILAN, June 16 (Reuters) - A Milan court on Tuesday acquitted all eight defendants in the first verdict among a dozen criminal cases into urban planning that stalled construction in Italy's financial capital.
The case focused on the construction of an 87-metre building that had been authorised on the basis of a simple renovation permit. The approval was part of a fast-tracking process for building permits adopted by the Milan municipality in recent years during a real estate boom in the northern city.
Milan prosecutors had sought convictions for all defendants, with sentences of up to two years and four months in prison.
The ruling marks a significant win for developers and the Milan administration.
Prosecutors had argued that the project required a full building permit, rather than just a renovation authorisation. Such a permit would have involved a longer approval process and higher charges payable to the city.
Judge Paola Braggion acquitted all defendants on the grounds that "the facts do not constitute a crime", according to a statement from the Milan court.
The ruling means the renovation permit was not deemed unlawful because "case law in criminal and administrative courts, as well as the Constitutional Court, has offered differing interpretations of the concept of renovation", the statement said.
FROZEN DEVELOPMENTS
The verdict was also welcomed by a committee representing families who bought homes in dozens of projects on construction sites which remain frozen due to the investigations by Milan prosecutors.
In a statement, the committee called for a formal meeting with the government to secure a clear legal framework that would protect homeowners and their properties.
Milan Mayor Giuseppe Sala, who is under investigation in a separate case, also welcomed the decision. He said he was "disappointed by the tone used by prosecutors in pressing the charges".
A judicial source told Reuters that Milan prosecutors would wait for the detailed reasoning behind the ruling before deciding whether to appeal.
Under Italian law, the acquittal in this case does not automatically affect other proceedings.
Two further trials linked to other construction sites are nearing their final stages, with verdicts expected after the summer.
Meanwhile, around a dozen investigations are still ongoing at the preliminary stage.
(Reporting by Claudia Cristoferi and Emilio Parodi, editing by Keith Weir)
