One of Georgia’s largest construction companies, Center Point Group, was founded in 1999 and became one of the market leaders within a few years. The company was established by Vakhtang Rcheulishvili, his wife Maia Rcheulishvili, and Maia’s sister, Rusudan Kervalishvili. The group included around 70 different companies. Vakhtang Rcheulishvili served as a member of parliament between 1992 and 2004, while Rusudan Kervalishvili was an MP from 2008 to 2012.

The company gained the trust of thousands of people, including Georgian emigrants, through a so-called pyramid scheme. It sold apartments before construction had even begun, promising buyers that they would receive ownership once the buildings were completed. However, the company misused approximately 300 million USD in revenue, leaving 6,200 families without apartments or refunds.

The problems surrounding Center Point became evident after the August 2008 war. At a session of the Temporary Parliamentary Commission for the Restoration of Georgia’s Territorial Integrity on December 12, 2008, a company representative stated that construction halts during the war had caused a loss of 1.3 million USD.

On September 3, 2010, Vakhtang Rcheulishvili announced that to resolve the crisis, Center Point’s assets had been transferred to a newly created company, Dexus, under the condition that it would fulfill commitments to clients and complete unfinished projects. By 2011, Dexus had finished several projects, including Chavchavadze Corner, Magnolia, and Oasis in Didi Digomi.

However, many other projects remained incomplete. On April 28, 2011, about 300 dissatisfied citizens held one of the first major protests near the Parliament of Georgia. Protesters carried whistles and banners reading “SOS,” “Where is our government?” and “Center Point, Dexus – Fraudsters.” They demanded the removal of parliamentary immunity from MP Rusudan Kervalishvili and an official investigation into the unfinished construction sites.

In 2011, affected families formed an NGO called the Association of Defrauded Homebuyers, which brought together around 100 people. Dozens of lawsuits were filed demanding the annulment of contracts between Center Point and Dexus, the registration of completed apartments in buyers’ names, and compensation. On November 29, 2011, and January 26, 2012, the court partially satisfied the plaintiffs’ demands, ordering the company to either complete construction or provide compensation but postponed enforcement, citing the company’s poor financial condition.

Despite the court’s decision, the protests continued. The defrauded homeowners held demonstrations at the Presidential Administration, appealing directly to President Saakashvili to intervene. They also protested at the Public Defender’s Office, expressing distrust after being told that the issue was beyond its mandate. Demonstrations were also held outside the Ministry of Justice demanding an objective investigation, at the headquarters of Real TV over Dexus advertisements, and at the Government Administration. A separate protest took place in Batumi, where Center Point had also begun construction.

On February 23, 2012, protesters brought cottage cheese to MP Rusudan Kervalishvili after she had told them during a February 7 meeting that she could not help them, saying she could not even afford cottage cheese herself.

Following the 2012 parliamentary elections, when Georgian Dream replaced the ruling United National Movement, the Ministry of Internal Affairs launched a criminal investigation into fraud on October 22, 2012. On November 6, 2012, Prosecutor General Archil Kbilashvili met with the victims, and the case was officially handed over to the Prosecutor’s Office in December.

On March 1, 2013, the agreement between Dexus and Center Point was terminated. Maia Rcheulishvili stated that this happened due to “different visions.” At that time, 705 homeowners were still waiting for their apartments.

Despite the ongoing criminal investigation, protests continued.

On July 11, 2013, it was revealed that Center Point Group, Dexus, and the related Alliance Capital had their assets frozen. Criminal charges for large-scale fraud were filed against Maia and Rusudan Kervalishvili, and Dexus co-founder Ivane Tsaguria was arrested for aiding fraud. Later it emerged that Tsaguria had illegally appropriated property worth 2 million USD from Center Point.

On July 12, Rusudan Kervalishvili held a press conference, taking full responsibility and demanding the strictest legal punishment, saying: “Six homebuyers have committed suicide. I couldn’t do that.”

On July 13, Tbilisi City Court partially granted the prosecution’s request, setting bail at 250,000 GEL for each of the Kervalishvili sisters, and 100,000 GEL for Tsaguria.

The investigation continued for years. In July 2016, the director of Center Point Adjara, Irakli Mindeli, and sales manager Salome Charkviani were arrested.

On July 12, 2016, the court ordered the pre-trial detention of Maia and Guka Rcheulishvili (the company’s supervisory board chair and Maia’s son), as well as Charkviani and Mindeli. The announcement was met with applause by victims gathered outside the courthouse, who said, “Justice has been restored—criminals are finally in prison.”

On July 16, 2016, Charkviani was released under a plea deal and received a 4-year suspended sentence.

On July 20, Rusudan Kervalishvili demanded her own arrest and the release of her sister.

On August 11, Tabukashvili-88 cooperative chairman Zurab Tabukashvili was detained.

On December 21, the court denied Maia Rcheulishvili’s lawyer’s motion to release her on health grounds.

On March 31, 2017, Maia and Rusudan Kervalishvili were sentenced to four years in prison each.

On April 6, 2017, Guka Rcheulishvili was released on 30,000 GEL bail.

A week later, on April 13, Vakhtang Rcheulishvili, the company’s co-founder, died of cancer at age 63.

On September 28, 2017, Guka Rcheulishvili announced that Center Point had been sold—clarifying later that an investor had taken over the company’s assets and liabilities. In September 2018, it was revealed that the investor was m² Real Estate. Guka expressed hope that this agreement would lead to the release of his mother and aunt.

On February 20, 2019, Tbilisi Deputy Mayor Irakli Khmaladze confirmed that no agreement had been finalized between Center Point and m².

On April 10, 2019, Maia Rcheulishvili was sentenced to seven years in prison in the Mioni residential complex case, while former Dighomi District Apartments department head Ketevan Zhordania received five years.

On March 30, 2021, Rusudan Kervalishvili completed her sentence and was released from prison.

On September 15, 2021, Tbilisi Mayor Kakha Kaladze announced that the Center Point issue had been resolved and that nearly 6,000 families would receive apartments.

On September 17, 2021, Maia Rcheulishvili was released after reaching a plea deal in the Mioni case.

Throughout these years, victims continued protesting—some even went on hunger strikes. One of the final demonstrations took place on September 20, 2019, when residents had already received assurances from the city government that their issue would be resolved.

By 2021, the new investor company Nextori took over two unfinished sites—on Marijani Street and Gelovani Street. The total number of affected families was 550.

By February 11, 2025, construction of a new building on Gelovani Street was underway, scheduled for completion by August 2027, with 112 families set to receive homes. On Marijani Street, demolition of the old structure was complete, and a new building was being prepared for construction, expected to finish by 2029.