Gurgaon Real Estate fraud case extends as director arrested for selling same floor to multiple buyers
Synopsis
A massive commercial property scam in Gurugram has further snowballed with police arresting the director of a real estate company for selling some buildings floor to over 25 persons. The matter came to light after a complaint was made by a corporate buyer, who had deposited INR 2.5 crore for his unit but had not yet received registration in his name. Investigators then discovered that the same floor was sold and leased back multiple times through another company. The fraud is suspected to be worth Rs 500 crore and is being probed by the Economic Offences Wing.
The police have arrested a senior executive of a Gurugram-based real estate group for their role in a multi-crore property fraud that led to the same commercial floor being sold several times over. The accused used to work as director and chief executive at 32nd Avenue and its group company 32nd Milestone Among the various charges against him, Kapur sold individually one floor of his office space in a Gurgaon metro- mall to over 25 firms and individuals leading to loss of nearly INR 500 crore to investors.
The matter was brought to light after Tram Ventures Private Limited approached the police for fraud, claiming that they had entered into an agreement in 2021 with accused Wahal to buy a 3,000-sq ft unit on the first floor of 32nd Milestone commercial complex in Gurugram. The firm which had paid 2.5 crore with respect to the property and entered into an agreement of sale for the same but conveyance deed was not registered in their favor.
During the initial verification, officers discovered that despite selling the same floor to other buyers over next two years subsequent to this deal on an earlier date. According to police documents, a lot of these continued sales failed to include proper notification to previous buyers, and also sparked some obvious concerns about misrepresentation.
Subsequent investigation found that after reselling the floor to multiple buyers, the defendant had allegedly planned to lease the same space back for 30 years under the name Growth Hospitality Private Limited. Authorities believe that the structure was designed to secure continuous control of the properties in question while collecting payments. In light of these developments, an official FIR was launched in the Civil Lines police station. The investigation was later transferred to the Economic Offences Wing. The accused was then taken before a local court and committed to police detention for further questioning. Agents have since begun scrutinizing transaction documents, bank statements, and lease agreements to determine the extent of the alleged fraud as well as any accomplices in the offense. The current case highlights, once again, the incapability of buyer due diligence and the utmost importance of registering property transfers promptly. FAQ Q1. What is the Gurugram real estate fraud case? This relates to a severe alleged commercial property fraud in Gurugram, where the Fraud accused a senior executive with a real estate group of purchasing the same industrial building’s floor to more than twenty-five buyers. Over the years, with the exception of transferring the registered ownership to the original buyers, the accused had allegedly sold it several times. Q2. Who got arrested, and what was his role? Specifically, the police arrested a chief executive and director of 32nd Avenue and its connected firm 32nd Milestone for masterminding the sales contract with numerous buyers for the same floor of the commercial property.
Q3. How was the suspected fraud discovered?
The matter came to light after Tram Ventures Private Limited filed a police complaint stating it had paid INR 2.5 crore in 2021 to purchase a commercial unit of 3,000 sq ft at the 32nd Milestone complex. Though a sale deed was executed, the conveyance deed was not registered. Further checks showed that the identical floor had been sold several times to other purchasers.
Q4. What did investigators find — or not – in the investigation?
Police discovered that even though sales had been agreed, the floor was still being sold to new buyers over two years. Investigators also reportedly found that the property was subsequently leased back for 30 years, in a deal with another company, Growth Hospitality Private Limited, which they claim enabled the accused to keep charge of the premises while raising money from investors.
Q5. How big is the suspected fraud and who is investigating it?
The quantum of the fraud is of about INR 500 crore. An FIR was lodged at Civil Lines police station and later the case was transferred to Economic Offences Wing (EOW). Investigators are poring over sale deeds, lease agreements and bank transactions to gauge the full nature of criminality.
Q6. What are the bigger issues that this case raises for people buying property?
The case self-explanatory explains the perils of the commercial property transaction and need of due-diligence and prompt registration of documents relating to properties. It also demonstrates that there are opportunities for misuse in complicated ownership and lease-back structures, and that buyers should ensure the title is clear and free from registration before disbursing final payments. Source PTI
