Delhi comes first in the list of property fraud and misappropriation cases among all other states and union territories of India according to NCRB (National Crime Records Bureau). As per reports in this section total number of registered under cheating and breach of trust are almost 181 in the year 2013. Mumbai is closed followed by Delhi with 176 cases.
The real estate India is growing at a fast so as the scam and frauds. Now a day consumers need to careful while planing to buy flats in Mumbai like cities. These scams are running around entire gamut like legal fraud; fly by operators with false promises and not reasonable dealing by offering something free.
According to the reports, double whammy is for innocent real estate Mumbai investors. The reason is to get justice for those fraud victims can be long drawn and also uncertain because of complex disputes prevailing in this sector. There is absence of watchdogs in this industry which lead the matter further as per experts.
Here are some scams that typically plague Indian real estate market today which each investor must keep an eye out there:-
As competition in the sector of real estate is increasing at fast rate, the builders are doing their best to attract as much buyer possible in the first phase of project itself to meet fund requirements. With false promises and advertisements are parts of this. A real estate developer from Gurgaon was accused recently by more than 700 investors for misappropriate fraud of Rs 1000 crore. This developer has promised the investors to get 12% profit from investment until possession, but that cheque got bounces given by the developer. The situation became worse when investor faces inordinate delay in project and burned those investors property dream into ashes.
It happens with either sellers or developers. A case came where scammer have made duplicated deed on title of vacant and disputed projects, then sold to some innocent buyers. As per reports, by the time fraud was detected, scammer went secretly by counting bundle of money that he made from this fraud dealing. Similar sort to this real estate fraud when a buyer has purchased a home that late came to know this project is not included in the part of land where builder has specified in the deed while booking it.
For marketing the projects these builders assures fixes incomes from these properties as rent. Even some of them make fake rental list of several project on the internet. When a prospective buyer get in to this trap without doing much research to earn extra income from this investment, is the most false decision he takes in his life. Once the purchase is complete, rentals come hardly and leave the investor in lurch.
Deliberately Delay the project
Delay in project and disappears builders are some of the common fraud happening here. The strategy of unscrupulous builders is delaying the project completion intentionally until they get adequate number of buyers. Some other diver their money got from one project into another and delay both project simultaneously in the process.
Delay in Approval
Many reports came when buyer are left with drenched hands in despair of procession since sanctions for several utilities such as water connection, electricity etc are in pending. Other issues like unauthorized layout plot; building in land use violation case, floor area violation etc got detected after doing all agreement formalities and commenced construction can lead to further delay in getting other approvals and in registration of title.
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