Among them is Nammos, a jet-set playground featuring open-air luxury boutiques and a beachside restaurant, owned by Monterock International, a Dubai-based private equity holding company, and Alpha Dhabi Holding. On Friday, the government called for Nammos to be shuttered, and the police closed one of its beach restaurants. A Nammos lawyer called that order illegal and said the company would contest it. A Greek court has also rejected an appeal by Nammos of a separate government order to demolish illicit structures on the site.
There is also Principote, a destination for the affluent that for years has expanded over Panormos Beach, along a picturesque bay, despite multiple citations. Authorities have levied a €22 million fine for illicit building extensions, with the option of lowering it to just €500 if the structures were removed. Principote, which is registered to a holding company in the Marshall Islands, has contested the infractions and resulting fines. The police last week ordered it closed until further notice. The company has appealed that decision.
In 2016, Mykonos’s mayor, Konstantinos Koukas, closed the business after reports of unauthorized building extensions. “But the owners just kept reopening, and there was little we could do,” he said.
Principote’s activity raised red flags at the Greek Archaeological Service, which has identified antiquities beneath hills near the club. Panormos is among the areas being targeted for inspections by archaeologists. In a media briefing after his hospitalization, Mr. Psarros said that archaeologists had requested police protection after facing armed guards when trying to inspect building extensions.
A lawyer for Principote did not respond to requests for comment.
Tasos Xidakis, the owner of the neighboring Albatros Club Hotel, has watched the club’s expansion with alarm. In 1989, his father built small bungalows above Panormos, a public beach once accessible to all. Mr. Xidakis and his brother expanded the business into a bucolic hotel complex with a birds’ eye view of the Aegean Sea — and of Principote.