Developer Northern City illegally seizes the residents’ money

The residents of the Ultra City complex, erected by CJSC Northern City (part of the RBI group — Holding RBI by Eduard Tiktinsky), appealed to the law enforcement authorities, State Construction Supervision and Expertise Department, and the President of Russia about the theft of their funds by developers and the associated management company.

The subject of the appeal was that the merchants built a multi-line housing complex, addressed as 60, Commandant Avenue, St. Petersburg, and did not connect it to the electricity supply under a permanent scheme. They provide the complex with electricity from the temporary technological accession used in the construction of the facility. That’s expressly prohibited by regulations in the form of government decrees.

The reason – not to wait for the commissioning of networks. They needed to sell apartments and to recapture the loans taken. At the same time, the business risks were shifted to the tenants: a contract for reimbursement of costs was fabricated. It was forged between the developer and the management company UK Novgorod and on the basis of it they illegally collected money from the tenants.

Let’s notice, that such illegal and immoral actions constitute an offence. In fact, CJSC Northern City and its affiliated management organization, which is also owned by the general director of the developer Eduard Tiktinsky, sold to buyers unfinished construction. That’s why, at the request of the supervisory authorities they can suspend its illegal electricity supply and disconnect, for example, elevators. So, as you see, the residents will have to live without light.

Temporary technological accession is used by the housing complex Ultra City in the construction of new queues of the complex. That is why, any accident caused by guest workers (illegal migrants) can de-energize tenants who paid lots of millions for so called comfort-class housing. And don’t forget about voltage drops, damage to household appliances and short circuits with fires.

Northern City fraud

Another shell-company Vympel Sales Company is included now in the scheme of taking money. That was done in order not to cause tenants and supervisors unnecessary questions, such as “Why do they pay for electricity through the management company, not through Petroelectrosbyt as others do?”

Experts note that the scandal could radically affect the activities of Holding RBI and CJSC Northern City because such scheme is used by the developers not for the first time. They mislead the buyers! The disclosure of these facts can drastically reduce the sales of housing and change the credit status of developers with a huge debt load.