diff --git a/python/lib/jython.jar b/python/lib/jython.jar
new file mode 100644
index 000000000000..04955766ed17
Binary files /dev/null and b/python/lib/jython.jar differ
diff --git a/python/python.iml b/python/python.iml
index d07cd3e735a9..8e69778bf084 100644
--- a/python/python.iml
+++ b/python/python.iml
@@ -3,6 +3,8 @@
   <component name="NewModuleRootManager" inherit-compiler-output="true">
     <exclude-output />
     <content url="file://$MODULE_DIR$">
+      <sourceFolder url="file://$MODULE_DIR$/pluginResources" isTestSource="false" />
+      <sourceFolder url="file://$MODULE_DIR$/pySrc" isTestSource="false" />
       <sourceFolder url="file://$MODULE_DIR$/src" isTestSource="false" />
     </content>
     <orderEntry type="inheritedJdk" />
@@ -11,6 +13,15 @@
     <orderEntry type="module" module-name="lang-api" />
     <orderEntry type="module" module-name="psi-extapi" />
     <orderEntry type="module" module-name="lang-impl" />
+    <orderEntry type="module-library">
+      <library>
+        <CLASSES>
+          <root url="jar://$MODULE_DIR$/lib/jython.jar!/" />
+        </CLASSES>
+        <JAVADOC />
+        <SOURCES />
+      </library>
+    </orderEntry>
     <orderEntryProperties />
   </component>
   <component name="copyright">
diff --git a/python/src/META-INF/plugin.xml b/python/src/META-INF/plugin.xml
index db61d652cdaa..8280b4ed1656 100644
--- a/python/src/META-INF/plugin.xml
+++ b/python/src/META-INF/plugin.xml
@@ -8,6 +8,12 @@
     Jemerov, Keith Lea</vendor>
   <change-notes>Updated for IntelliJ IDEA 7.0</change-notes>
 
+  <application-components>
+    <component>
+      <implementation-class>com.jetbrains.python.PyInspectionToolProvider</implementation-class>
+    </component>
+  </application-components>
+
   <extensions defaultExtensionNs="com.intellij">
     <fileTypeFactory implementation="com.jetbrains.python.PythonFileTypeFactory"/>
     <lang.syntaxHighlighterFactory key="Python" implementationClass="com.jetbrains.python.PySyntaxHighlighterFactory"/>
diff --git a/python/src/com/jetbrains/python/psi/PyFunction.java b/python/src/com/jetbrains/python/psi/PyFunction.java
index a30a65513e6a..05f700fc7580 100644
--- a/python/src/com/jetbrains/python/psi/PyFunction.java
+++ b/python/src/com/jetbrains/python/psi/PyFunction.java
@@ -30,13 +30,21 @@ import org.jetbrains.annotations.Nullable;
  * To change this template use File | Settings | File Templates.
  */
 public interface PyFunction extends PsiNamedElement, PyElement, PyDocStringOwner {
-    /**
-     * Returns the AST node for the function name identifier.
-     *
-     * @return the node, or null if the function is incomplete (only the "def"
-     * keyword was typed)
-     */
-    @Nullable ASTNode getNameNode();
-    @NotNull PyParameterList getParameterList();
-    @NotNull PyStatementList getStatementList();
+  /**
+   * Returns the AST node for the function name identifier.
+   *
+   * @return the node, or null if the function is incomplete (only the "def"
+   *         keyword was typed)
+   */
+  @Nullable
+  ASTNode getNameNode();
+
+  @NotNull
+  PyParameterList getParameterList();
+
+  @NotNull
+  PyStatementList getStatementList();
+
+  @Nullable
+  PyClass getContainingClass();
 }
diff --git a/python/src/com/jetbrains/python/psi/impl/PyFunctionImpl.java b/python/src/com/jetbrains/python/psi/impl/PyFunctionImpl.java
index 08991185cd54..4b36a8fec5cd 100644
--- a/python/src/com/jetbrains/python/psi/impl/PyFunctionImpl.java
+++ b/python/src/com/jetbrains/python/psi/impl/PyFunctionImpl.java
@@ -76,6 +76,17 @@ public class PyFunctionImpl extends PyPresentableElementImpl implements PyFuncti
     return childToPsiNotNull(PyElementTypes.STATEMENT_LIST);
   }
 
+  public PyClass getContainingClass() {
+    final PsiElement parent = getParent();
+    if (parent instanceof PyStatementList) {
+      PsiElement pparent = parent.getParent();
+      if (pparent instanceof PyClass) {
+        return (PyClass) pparent;
+      }
+    }
+    return null;
+  }
+
   @Override
   protected void acceptPyVisitor(PyElementVisitor pyVisitor) {
     pyVisitor.visitPyFunction(this);
diff --git a/python/testData/inspections/returnValueFromInit/expected.xml b/python/testData/inspections/returnValueFromInit/expected.xml
new file mode 100644
index 000000000000..aff3dc3a90eb
--- /dev/null
+++ b/python/testData/inspections/returnValueFromInit/expected.xml
@@ -0,0 +1,23 @@
+<?xml version="1.0" encoding="UTF-8"?>
+<problems>
+  <problem>
+    <file>test17.py</file>
+    <line>7</line>
+    <description>Cannot return a value from __init__</description>
+  </problem>
+  <problem>
+    <file>test17.py</file>
+    <line>13</line>
+    <description>Cannot return a value from __init__</description>
+  </problem>
+  <problem>
+    <file>test17.py</file>
+    <line>15</line>
+    <description>Cannot return a value from __init__</description>
+  </problem>
+  <problem>
+    <file>test17.py</file>
+    <line>16</line>
+    <description>Cannot return a value from __init__</description>
+  </problem>
+</problems>
diff --git a/python/testData/inspections/returnValueFromInit/src/test17.py b/python/testData/inspections/returnValueFromInit/src/test17.py
new file mode 100644
index 000000000000..7c08df34b4a3
--- /dev/null
+++ b/python/testData/inspections/returnValueFromInit/src/test17.py
@@ -0,0 +1,35 @@
+'doc'
+
+class X:
+    'should get a warning for returning value from __init__'
+    def __init__(self):
+        print 'howdy'
+        return 1
+
+class Y:
+    'should get a warning for returning value from __init__'
+    def __init__(self, x):
+        if x == 0 :
+            return 0
+        if x == 1 :
+            return 53
+        return None
+
+class Z:
+    'should not get a warning'
+    def __init__(self, x):
+        return
+
+
+class Q(Z):
+    'd'
+    def __init__(self):
+        v = lambda : None
+        Z.__init__(self, v)
+
+
+class S(Z):
+   'd'
+   def __init__(self):
+       Z.__init__(self,lambda x: x in ['p','f'])
+
diff --git a/python/testSrc/com/jetbrains/python/PythonInspectionsTest.java b/python/testSrc/com/jetbrains/python/PythonInspectionsTest.java
new file mode 100644
index 000000000000..06a6dd4977db
--- /dev/null
+++ b/python/testSrc/com/jetbrains/python/PythonInspectionsTest.java
@@ -0,0 +1,17 @@
+package com.jetbrains.python;
+
+import com.intellij.testFramework.InspectionTestCase;
+import com.intellij.openapi.application.PathManager;
+
+/**
+ * @author yole
+ */
+public class PythonInspectionsTest extends InspectionTestCase {
+  public void testReturnValueFromInit() throws Exception {
+    doTest(getTestName(true), PyInspectionToolProvider.getInstance().createLocalInspectionTool("ReturnValueFromInitInspection"));
+  }
+
+  protected String getTestDataPath() {
+    return PathManager.getHomePath() + "/plugins/python/testData/inspections/";
+  }
+}