Egypt court rules Talaat Mostafa land contract valid

An Egyptian court ruled on Tuesday that the Talaat Mostafa Group(TMG) land contract for its Madinaty project was valid, the firm's lawyer said.

TMG's $3 billion Madinaty project has been caught up in a legal dispute since last year over the purchase of land directly from the state instead of by public auction.

"The court ruled that the Madinaty contract was valid," TMG lawyer Shawky el-Sayed told Reuters.

The legal challenge to TMG's flagship Madinaty development last year sparked a sector crisis as several copycat lawsuits were launched. The propety market downturn worsened with the ousting of Egyptian President Hosni Mubarak in February.