Logix Infratech's incomplete societies in Noida face power crisis

Residents of Logix Blossom Greens and Logix Zest, two residential societies in Noida, are currently facing the consequences of relying on diesel generator (DG) sets for their power supply. These societies, developed by the now-bankrupt Logix Infratech, have been in an incomplete state for several years. Residents moved in five years ago after receiving a provisional occupation certificate from Noida, unaware that a reliable power source was not ensured.

Despite numerous complaints to the authorities, no action was taken, and Logix continued to rely on DG sets without facing any repercussions. The residents were charged according to the prevailing power tariff and did not experience any significant issues. However, recently, the insolvency resolution professionals (IRPs) responsible for managing the societies informed the residents about the rising diesel prices and the subsequent increase in the per unit cost of electricity.

In April, the IRP introduced a new tariff structure at Logix Blossom Greens, where 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. Fixed charges have also been increased to Rs 700 per flat per month. Additionally, power cuts of four to five hours a day have been implemented to limit diesel consumption to 2,000 liters per day, adding to the residents' challenges.

At Logix Zest, the IRP has imposed a "summer charge" based on the actual power consumption between October and April by each family, which is expected to result in similar power cuts. The per unit cost of generating power through the DG sets is Rs 34. Residents will now have to pay varying rates per unit based on their increased consumption during the selected period. The revised electricity tariff at Zest ranges from Rs 7.50 to Rs 12 per unit, with fixed charges set at different rates for studio apartments and 2 BHK flats.

Residents are now facing the impact of power cuts during extreme weather conditions while being forced to pay higher electricity tariffs. At Blossom Greens, residents mention that each tower is allowed to operate only one of its two lifts. Although discussions have been held, raising funds for a regular electricity connection has been postponed due to the substantial investment required, estimated at Rs 11 crore for Blossom Greens and Rs 8-9 crore for Zest.

The resolution professional at Blossom Greens has assured the electricity department of arranging Rs 3 crore through interim finance. However, the society needs to establish a power connection from the Bhangel feeder, which would necessitate an additional expenditure of Rs 7-8 crore. To fund this, each resident would have to contribute Rs 50,000. Similarly, at Zest, residents may be required to contribute a similar amount for a permanent connection to the power grid.

Residents have expressed their frustration with the situation, as they were initially promised power and gas connections upon moving into the society, but these promises have not been fulfilled. They now find themselves responsible for financing their own power connections. While issues like these were prevalent in older societies, recent regulations mandate that developers provide progress reports of their projects to the Uttar Pradesh Real Estate Regulatory Authority (UP Rera) every three months, leaving no room for such lapses.

Next (Indore Municipal Corporation (IMC) takes down 21 old and unsafe houses)

Logix Infratech's incomplete societies in Noida face power crisis

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