Nakheel scapegoat on service charges: CEO

Nakheel, master developer of Palm Jumeirah, on Sunday claimed the company was made “scapegoat” in the Palm Shoreline Apartment service charge issue.

“We were made the scapegoat. It was being said that we were not doing enough and we were increasing charges, but on the contrary people have found out that these were unfounded allegations against us,” Nakheel CEO Sanjay Manchanda told ‘Emirates24|7’.

“All our services are being rendered and massive amount of collection has happened.

"We are encouraging our customers and owners to play their part in the whole development,” he said when asked if the service charge collection had improved in 2012.

“You cannot expect services to be rendered without a cost. And that’s the new reality in the freehold areas. If you demand services you have to pay for it. We are confident the prices we are asking our consumers to pay is a fair and very competitive.”

He stated the company was continuously interacting with its consumers and was transparent in all their activities, adding that it was working on reducing service charges in all its communities.

It was in late 2011 when Nakheel moved to bar service charge dodgers in the Palm Shoreline apartments from accessing community facilities.

Tenants of these defaulters were also barred. But the issue became a bone of contention when the developer uses the “name and shame” policy to recover its dues.

Subsequently, company Chairman Ali Rashid Lootah told media on January 5 that owners of Shoreline Apartments had started paying their service charges and the company was collecting Dh500,000 per day.

"We are collecting half a million per day from apartment owners in service charges… we are only charging them the approved Real Estate Regulatory Agency fees, but not a single dirham for club membership.”

Lootah, however, did warn defaulters of “every possible action” under the law.

Nakheel also got a shot in the arm when the Director-General of the Dubai Land Department said Nakheel could prevent residents at the Shoreline

Apartments from using the beach if landlords don't pay the service charges and had the right to move the court if property owners refuse to pay the accumulated service fees.

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