Relying On Dg Sets For 5 Years, Why Residents Are Feeling The Heat Now, ET RealEstate

June 23, 2023

<p>File Photo</p>
File Photo

NOIDA: Among the scores of residential societies stuck at various stages of incompletion in Noida, Logix Blossom Greens and Logix Zest, developed by the now-bankrupt Logix Infratech in Sector 143, are solely reliant on diesel generator (DG) sets for power supply.

Several residents had moved in to the partially-completed condominiums nearly five years ago after Noida issued a provisional occupation certificate. The documents were issued without ensuring the availability of a reliable power source.

Numerous complaints, since then, to the Authority and other government bodies resulted in zilch. Consequently, Logix continued to rely on DG sets with impunity.

Charged at par with the prevailing power tariff, residents so far didn’t feel the pinch.

But recently, the insolvency resolution professionals (IRPs) — put in charge of the two societies after an insolvency process was initiated against Logix last year — informed residents that diesel prices had shot up and so would per unit cost of electricity.

In April, the IRP introduced a new tariff structure at Logix Blossom Greens. Under the revised rates, residents will now be charged Rs 7.5 for the first 200 units per month, followed by Rs 12 for the subsequent 800 units and Rs 19 for any remaining units. Additionally, fixed charges have been increased to Rs 700 per flat per month.

But power rostering, for four to five hours a day, to restrict diesel consumption to 2,000 litres per day has come as a double whammy.

At Zest, residents anticipate similar power cuts, but the resolution professional has imposed a “summer charge” instead — to be calculated considering the actual power consumption between October and April by each family.

The per unit cost of generating power through diesel genset is Rs 34.

A resident will have to pay Rs 5 per unit for up to a 15% increase in consumption from the selected period, for a 15-25% increase in consumption, one has to pay Rs 7 per unit, for a 25% to 40% increase, the per unit cost will go up to Rs 10, while Rs 14 per unit will have to be paid if consumption goes up and above 40%.

The revised electricity tariff in Zest, meanwhile, is Rs 7.50 per unit for up to 250 units, Rs 8.50 for units ranging from 251 to 450, Rs 10 for units ranging from 451 to 600, and Rs 12 for units above 600. Fixed charges are set at Rs 202 for studio apartments and Rs 520 for 2 BHK flats.

Residents say they are bearing the brunt of power cuts in the extreme weather while being forced to pay a higher power tariff. At Blossom Greens, residents say, each tower was allowed to use one of its two lifts.

While there have been several rounds of talks, raising funds for a regular electricity connection has been put on the back burner, at least for now, as an estimated Rs 11 crore is needed to set up the power supply infrastructure in Blossom Greens and Rs 8-9 crore in Zest.

While the resolution professional at Blossom Greens has assured to pay Rs 3 crore — arranged through interim finance — to the electricity department, the condo needs to take a power connection from the Bhangel feeder that would require an additional expenditure of Rs 7-8 crore. To fund this, each resident would have to deposit Rs 50,000.

At Zest, too, residents may have to cough up a similar amount for a permanent connection with the power grid.

“When I moved into the society in 2017, the developer said the power and IGL connections would soon be made available as 100-odd families had started living in the society. Three years later, we were told the developer was filing for bankruptcy. Another three years, and now we have been told to shell out money from our own pocket for a power connection,” Zest resident Sumit Jain said.

Tripti Mishra, another resident of the condo, doesn’t understand why the RP cannot ask the builder to pay for the permanent power connection. “Even if we fund the power connection, what is the guarantee that it will be refunded after a new builder is brought in to complete the project?”

Residents also blamed Noida for their plight. “Why did Noida issue a partial occupancy certificate to the builder and remain a mute spectator for so long when the two societies did not have proper electricity connection in the first place,” one of them asked.

CEO Ritu Maheshwari said she was not aware of the particular case but promised to look into it and get back. She, however, clarified that OCs are issued if an electricity connection is available in a society. “But now, the Authority is left with little scope to take punitive action (against the builder) as residents are already living in the two societies,” she added.

The NCR chapter of CREDAI, an apex body of the developers, said such issues were noted in older societies. “Now, every developer is required to give a progress report of projects to the UP Rera every three months, which is then uploaded on the portal. So, there is no scope for such lapses,” an official added.

Blossom Greens, launched in 2010, offered possessions to the first set of homebuyers in February 2017 under a part OC from the Noida Authority. Zest, in Sector 143, was launched in 2011 and comprises 14 towers with 3,400 flats, of which nine towers are incomplete. Homebuyers, who have received possession, have been unable to register their apartments due to Logix Infratech’s outstanding dues to the Noida Authority.

  • Published On Jun 18, 2023 at 01:46 PM IST

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