• Builder money extortion on pretext of an Unusual Electricity Contract with the Electricity supplier

Hello Sir,
My question is related to the problem which more than 100 residents of our society are facing because of an uncommon type of contract which was created between our builder and the electric supply company. As per the contract the builder takes power from the electric supply company at higher voltage and steps it down to a lower voltage and then supplies it to us to our house hold.
The builder in turn has been collecting the electricity charges from each of the household based on the meter readings installed for that purpose in each house.
This system of electricity consumption and hence the collection has been continuing since last 15-20 years or so. 
For this purpose the builder formed an intermediate agency known as "AG8 ventures ltd". This agency is run by the relatives of the builder and enacts as per the directive of the builder. 
Now the builder has declared himself 'bankrupt' person but enjoying  all the hidden benefits of  bankruptcy. He lives in a nearby palatial bungalow amidst all sorts of comforts and pleasures of an aristocratic life. 
We, the residents are ready to pay the electricity consumption charges like we have been doing since the very beginning but "AG8 ventures ltd" is now demanding an exorbitant amount of money 
(running into crores) from us like a ransom/extortion money in the name of modernization of the power supply system network and is threatening to stop the supply of electricity to our household of we fail to do so. 
We seek your advice to find a justified/reasonable solution to the problem, as to what we should do to come out of this day-robbery type of situation.
Asked 2 years ago in Property Law
Religion: Hindu

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4 Answers

Terminate the contract with the agency 

 

2) approach electricity supply board to supply electricity directly to society 

Ajay Sethi
Advocate, Mumbai
99784 Answers
8145 Consultations


Section 61 of Electricity Act specifies  the terms and conditions for the determination of tariff.  AG8 VENTURES LIMITED is involved in Building of complete constructions or parts thereof; civil engineering. Under the Act no intermediary can engage in distribution, generation of electricity. There seems to be big fraud. The data given is not sufficient to give you actionable advice.

Ravi Shinde
Advocate, Hyderabad
5132 Answers
42 Consultations

Why should an agency be a service provider to provide or supply  electricity to the members of the apartment owners association.

If this agency a power generator or the distributor of electricity to the residents of the complex?

Why is the builder meddling with the RWA's affairs?

Is the RWA not taking any action on this persisting threat and exploitation?

You can gather the members to call for an extra ordinary meeting of the association and direct the association to terminate the agency  and to obtain connection/supply of electricity directly from the government or the governmental agency to provide electricity to the apartments of the association.

You cannot live at the mercy of a third party  who is exploiting and enjoying the benefits of such exploitation

 

T Kalaiselvan
Advocate, Vellore
89985 Answers
2492 Consultations

Dear client I am sorry to hear that but in this case you can go head and file a complaint against them to in your  nearby police station

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

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