11:00 – 19:00Property laws in India are complex and often confusing, making them vulnerable to fraudsters. The increasing demand for properties, the rise in the number of real estate transactions, and the lack of awareness among buyers have resulted in a surge of property-related fraud cases in India. Fraudsters take advantage of this vulnerability and often use fraudulent means to acquire properties or cheat buyers. In this blog post, we will discuss the dark side of property laws in India and provide case laws that illustrate the various types of property-related frauds.
Forged Documents:
One of the most common types of property-related frauds is the use of forged documents. Fraudsters often create fake property documents, including title deeds, sale agreements, and power of attorneys, to make it appear as if they own the property. They then sell the property to unsuspecting buyers, leaving the buyers in legal trouble when the real owner of the property appears.
Case Law: In 2021, the Bombay High Court heard a case where a woman had sold a property she did not own to a buyer. The woman had created a fake power of attorney and forged documents to make it appear as if she owned the property. The court ruled in favor of the buyer and ordered the woman to repay the buyer’s money.
Land Grabbing:
Another common type of property-related fraud in India is land grabbing. Land grabbers often use force or intimidation to take over someone else’s property. They may use fake documents or bribe officials to acquire the property illegally.
Case Law: In 2020, the Madras High Court heard a case where a builder had constructed a building on land owned by the government. The builder had created fake documents and bribed officials to acquire the land. The court ruled in favor of the government and ordered the builder to demolish the building and return the land to the government.
Benami Transactions:
A benami transaction is a transaction where the property is held by one person but paid for by another person. These transactions are illegal under Indian law and are often used to evade taxes or hide illegal money.
Case Law: In 2020, the Income Tax Department conducted raids on the properties of a prominent politician in Karnataka. The department found evidence of benami transactions, where the politician had purchased properties in the names of his relatives and friends to evade taxes. The politician was charged with tax evasion and benami transactions.
Property Title Disputes:
Property title disputes occur when there are conflicting claims to the ownership of a property. These disputes often arise when the property has changed hands multiple times or when there is a dispute over inheritance.
Case Law: In 2020, the Supreme Court heard a case where two brothers were fighting over the ownership of a property. The property had been inherited by the brothers from their father, but there was no clear record of ownership. The court ruled in favor of the brother who could prove that he had paid for the property and had been living there for a long time.
Misrepresentation of Property:
Misrepresentation of property occurs when the seller of the property intentionally misrepresents the property to the buyer. The seller may misrepresent the condition of the property or hide defects.
Case Law: In 2020, the National Consumer Disputes Redressal Commission (NCDRC) heard a case where a buyer had purchased a flat based on false promises made by the builder. The builder had promised to provide amenities such as a swimming pool and gym but had not provided them. The NCDRC ordered the builder to compensate the buyer for the cost of these amenities.
Conclusion:
Property-related frauds are common in India, and buyers need to be cautious when purchasing properties. Buyers should always verify the authenticity of property. Title Fraud, Encroachment Fraud, Sale of Property with Disputed Title, Unauthorized Construction, Property Misrepresentation and much more are quite common and the Buyer needs to be extremely vigilant. Due diligence, proper documentation, and clarity are essential to avoid property frauds. It is always advisable to seek legal counsel before entering into any property transaction to safeguard your interests.
Feel free to write to us at mail@lawyersonia.com or call +91 9845944896 if you wish to consult or discuss your matter. “Sonia and Partners” is a Boutique law firm led by Adv. Sonia Rajesh supported by a team of qualified and among the Best Lawyers in Bangalore practicing in the area of Family Law, Property Law, and Criminal defence serving Citizens of India, Overseas Indians, NRIs and Global International Clients.
