Realty often sees fraud of people’s hard-earned money
From cunning schemes that prey on the dreams of home seekers to the exploitation of digital payment methods, real estate fraud takes on diverse disguises
New Delhi: Real estate fraud, a sinister underbelly of property transactions, manifests in various forms, exploiting unsuspecting individuals and tarnishing the integrity of digital transactions.
From deceptive housing projects ensnaring professionals to the misuse of QR codes in online dealings, its impact call for stringent measures to safeguard the digital economy.
Recently, several JNU and IIT professors were duped to the tune of Rs 11 crore on the pretext of providing affordable housing project under land pooling policy of Delhi Development Authority (DDA), an official had said, adding that they have arrested varsity's senior technical assistant in connection with the fraud and cheating.
The scam came to light after an FIR was filed based on complaints from professors at Jawaharlal Nehru University (JNU) and Indian Institute of Technology (IIT) Delhi by the Economic Offences Wing (EOW) of Delhi Police.
The complainants alleged that in 2015, the accused identified as P.D. Gaikwad, a Scientific Officer at JNU, formed the Noble Socio-Scientific Welfare Organisation (NSSWO) to offer affordable housing.
Gaikwad, as the President, lured them into becoming members, presenting details of a proposed housing project under DDA's land pooling policy in the L-Zone, Najafgarh. The complainants joined NSSWO, booking units in the project and making payments.
Gaikwad, in his role, provided false updates on the project's progress. In 2015, he showed them a piece of land in L-Zone without supporting documents, and over time, they realised he had deceived them throughout the project. In 2019, Gaikwad informed them of a new society, Siddhartha Officers Housing & Social Welfare Society, suggesting a switch from NSSWO. Complaints to return their money went unanswered. Gaikwad collected over Rs 11 crore, misappropriating the funds.
“During the investigation, complainants provided materials, brochures, and receipts from Gaikwad. Scrutiny revealed deceptive pictures and representations of the housing project, along with inducements in emails depicting DDA's land pooling policy,” said Deputy Commissioner of Police (EOW), Surendra Choudhary.
The DCP further said that the DDA confirmed no approval for any project under the land pooling policy. RERA (Delhi) stated the alleged society was unregistered. Gaikwad received over Rs 11 crore in the society's account, but funds were misused. “Gaikwad, when served notices, was initially unreachable. However, after sincere efforts, he was arrested on December 14, 2023, in connection with the case,” said the DCP.
From cunning schemes that prey on the dreams of home seekers to the exploitation of digital payment methods, real estate fraud takes on diverse disguises.
While 'Scan the QR Code and Pay'- is undoubtedly a very convenient method of payment in the Digital Age, major inroads have been made by cyber criminals to misuse the same to the disadvantage of the hard-earned money of other individuals.
There has been a rise in real estate frauds using QR Codes. The target platforms are online real estate broker portals where the seller/property owner is spotted and given a call regarding the property.
On showing a level of urgency to purchase or rent the property, the impersonator sends a QR Code/link to the Property Seller to enable his payment. As soon as the same is scanned by the seller, money gets debited from the account of the seller.
