OPINION | Property Frauds In India: The Real Estate Mirage You Didn't See Coming

"Buy land — they're not making it anymore," Mark Twain once said.

But in India, while the land might not be multiplying, the paperwork certainly is. And buried in this mountain of documents are the dreams — and sometimes, the nightmares — of many unsuspecting property buyers. Welcome to the tangled web of title tricks, possession puzzles, and power-of-attorney prestidigitation.

Here’s a refined walkthrough of the most common property frauds that continue to thrive in our cities and courtrooms — and how not to be the next headline.

Title Fraud: The Case of the Vanishing Owner

The Plot Twist:
Title fraud is like buying a car only to find out the seller didn’t own it — except the car is a ₹3 crore bungalow in South Delhi. Fraudsters either forge ownership documents or pose as heirs to properties lying unattended. By the time the real owner shows up, the tea is cold and the registry is done.

Example:
A plot in Gurugram, vacant for decades, suddenly finds a “new owner” with immaculately forged documents. He sells it. By the time the original family learns, the housewarming has already happened.

Your Defence:

  • Insist on a 30-year title trace.
  • Don’t just check encumbrance certificates — read them.
  • Hire a lawyer who’s more interested in fine print than fine dining.

Possession Fraud: Sold While You Were Sleeping

The Heist:
Possession frauds often involve properties that are already occupied, disputed, or (surprise!) already sold — just not to you. It’s like booking a hotel room and finding someone else’s toothbrush in the bathroom.

Example:
Mr. Sharma books a flat. So does Mrs. Patel. Both receive keys. One receives heartbreak. The builder blames a "clerical error." The court gets a new case.

Your Defence:

  • Visit the site — photos lie.
  • Include strong possession clauses in agreements.
  • Don’t ignore litigation history — Google is free.

Power of Attorney Fraud: Delegated, Then Derailed

The Illusion:
Power of Attorney is like lending your house keys. Most people water the plants. Some sell the flat. Especially when the principal is abroad and the attorney-holder is ambitious.

Example:
An NRI authorises his cousin to manage the property. The cousin sells it for a “family discount” to himself. Bonus: no family approval required.

Your Defence:

  • Demand a registered, purpose-specific PoA.
  • Speak to the owner directly — even if they’re abroad.
  • Avoid PoA-only deals unless you enjoy litigation as a hobby.

Why It Still Happens

Because many buyers still believe in luck over law. Because the legal due diligence is often outsourced to builders' “legal teams.” And because the Indian property market still has more drama than a daily soap.

But the Supreme Court’s judgment in Suraj Lamp & Industries v. State of Haryana (2011) was a sobering moment — it clarified that GPA sales don’t amount to ownership transfers. Translation: If it’s not registered, it’s not really yours.

Closing Argument: Don’t Let the Deed Be Your Downfall

Property transactions are not just financial — they're emotional. They carry dreams, security, and in some cases, generations of savings. That’s precisely why they deserve more than blind trust or hurried paperwork.

So, the next time someone offers you a “too good to be true” deal, remember: In real estate, if it smells like a scam, it usually is.

And as we say in the legal world — caveat emptor — let the buyer beware.

Raj Kumar Varier is an independent legal advisor and former legal head with Airtel, Samsung, Disney Star, DEN, and ABP. He advises on real estate, media, technology, and policy matters across India, and is a trusted partner for legal, regulatory, and forensic matters.

Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd.

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