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29 March 2024

'Millions' outstanding in owners' fees in Discovery Gardens

Notice posted in building in Discovery Gardens by Palm District Cooling stating a cut off if dues are not settled by November 9. (SUPPLIED)

Published
By Bindu Rai and Parag Deulgaonkar

As the deadline draws near, several residents in Discovery Gardens are panicking with the threat looming of being cut off from utilities on November 10 upon failure of payment of outstanding service charges.

Developer Nakheel has confirmed with Emirates 24|7 over 'millions of dirhams' are currently unsettled, with dues running into 'years'.

Residents were alerted of the deadline when a circular was issued on October 30, by Palm District Cooling (PDC), the provider of chilled water to the 291 buildings in Discovery Gardens, which stated a cut off if dues were not settled by November 9.

A second notice was issued on November 2, with names of defaulters also pinned up on notice boards in the common areas of the affected buildings.

In an emailed statement, a spokesperson for Nakheel further said, "As the Owners’ Association Manager, we immediately respond to notices of disconnection by issuing several reminders – through emails and notices in common areas – of the need to settle outstanding fees to ensure adequate funds are in the buildings’ accounts, which in turn will ensure continuation of services.

"Millions of dirhams in unpaid service charges are outstanding, with many owners not paying their dues in several years. 

"Only by collecting these fees can we ensure that there are adequate funds in the Owners’ Association account to prevent suppliers – such as Palm District Cooling – stopping their services."

The spokesperson continued, "Service fee payment is the responsibility of each owner to ensure continuation of services throughout the building.

"Non-payment can affect all owners and residents – including those who make regular payments.

"As always, we urge tenants looking to take out long term rental contracts to check that landlords have paid outstanding service fees before signing a contract."

In a notice posted in building in Discovery Gardens, Palm District Cooling (PDC), the provider of chilled water to the 291 buildings in Discovery Gardens, said: ‘You are, therefore, kindly requested to please clear the full outstanding dues by November 9, 2014, failure to receive the payment will lead to disconnected of chiller water services on November 10, 2014'.

The notice further said, ‘Please note that in case of disconnection the reconnection service will only be done once the full outstanding amount on the property including the reconnection charges is being settled out as in the agreement’.

A second notice was sent out on November 2, issued by Nakheel Facilities and Owners Association Management, along with a list of defaulters, which further stated: 'As stated in the letter of Palm Utilities, disconnection is due to non-receipt of payment towards the Palm District cooling charges billed to your building.

'There are a number of unit owners in your building who have failed to pay the service charge resulting in huge arrears.

'Thus, your building has no sufficient funds to pay even the utility charges. The list of units with outstanding service charges has been made available in the notice board of your building'.

It is not clear how many buildings or apartment units are currently facing a disconnection threat.