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29 March 2024

Skycourts investors cry foul over 37% 'unexplained' hike in 'back-dated' service fee

Skycourts investors have moved Rera. (Supplied)

Published
By Parag Deulgaonkar

Homeowners in Skycourts, a mega residential project in Dubailand, have raised concerns over the more than 37 per cent hike in service charges for the past two years, which includes a 138 per cent hike in common services category.

Over 90 residents have filed complaints with Real Estate Regulatory Agency (Rera), the regulatory arm of Dubai Land Department, seeking response to disallow the increase in charges.

The 37 per cent increase, residents say, is backdated from last year. It is for the financial year 2012-13 and 2013-2014 respectively, compared to the inaugural year 2011-12.

When Emirates 24|7 raised the issue with Rera, the agency confirmed the charges submitted by the developer had been certified, citing increase as a result of rising electricity, water and sewage bills.

Owners contend that the steep 138 per cent 'common services' charge increase is not due to Dewa, but in "cooling" charges levied by Alpha Utilities.

Rera has called on owners to pay the required fees as per the applicable law, adding it prefers gatherings (read: annual general meeting) to elect owners' associations within the project.

Homeowners, however, said there has been no annual general meeting held to approve the increase of the past two years and no accounts have been submitted for review to homeowners for the past three years.

Skycourts Interim Owners' Association (IOA) has issued notices to pay the new service charges with offenders being warned of late penalty fees of one per cent per month, denial of services such as access cards and issuance of no-objection certificate for transfer of unit and the case being forwarded to a debt  collection agency.

In the notice, IOA says: “If the Skycourts IOA is unable to collect service charges for the community, there will be insufficient funds to maintain all service.”



Investors showed pictures of poor maintenance like peeled off paint, out-of-order gym equipment and entry/exit barriers to this website.

Several apartment owners told this website they were more than willing to pay service charges and not be labeled as willful defaulters if only the IOA had explained the hike by holding a meeting.

“I have not paid my service charges for the year 2012-13 as well as 2013-14 even though I am very keen to pay the same.

“What is stopping me is that I would like to pay only the actual budgeted, audited and approved amounts in line with HOA constitution duly notified in accordance with the constitution.

“Unfortunately both Interim HOA management committee and HOA Management agency have failed to provide the same,” said an apartment owner, who wished not to be named.

He asserted: “I am keen to pay this amount not just because it is my obligation, but also because I want the maintenance and security to be improved in Skycourts where I live with my family.”