Purchasing real estate in India is usually assumed to be the final financial goal. But as location, price, and reputation of the builder are taken into consideration by most buyers, there is one important thing overlooked, and that is property registration. Sadly, some of the most dangerous scams occur there as well. Such scams are not much talked about, yet they may make buyers lose money, these cases may take a long time in court and even ownership is possible.
In this blog, we will uncover property registration scams in India, explain how they work, and provide you with practical tips to safeguard your investment.
Why Property Registration Matters in India
Registration of property is a legal provision as required by the registration act, 1908. It makes ownership a legal document at the office of the local sub-registrar. The property is registered and is a subject of public record, which minimizes the chances of conflict.
However, because the process involves multiple stakeholders — from property dealers to sub-registrar office staff — it creates opportunities for fraudsters to exploit loopholes.
Common Property Registration Scams in India
1. Duplicate or Forged Sale Deeds
Sometimes fraudsters make counterfeit sale examples in a way that they appear entirely real. They then sell the property to unwary people. Before anyone notices the fraud, the scammer has disappeared and the victim is left in court.
Real Case Example: In 2022, the Delhi Police uncovered a racket where fraudsters used forged Aadhaar cards and fake deeds to sell the same flat to multiple buyers.
2. Multiple Registrations of the Same Property
Due to the assistance of corrupt insiders at sub-registrar offices, some properties are sold to more than one individual. Because a digitization of property records has not occurred in most states yet this scam occurs more in semi-urban and rural regions.
Fact Check: According to a report by the Ministry of Rural Development, lack of updated land records contributes to nearly 66% of civil cases in India.
3. Under-Registration and Black Money Trap
The sellers even coerce buyers to base the property on a lower circle rate to avoid paying stamp duty. Although it appears to be a bargain, it exposes the shopper to the risk of IT notices, penalties, and even cancellation of the transaction in the event of any disagreements.
Example: In Gurgaon, buyers registering properties below actual market value have faced scrutiny from the Income Tax Department, leading to legal complications.
4. Impersonation Fraud
The actual owner is impersonated by the fraudsters using counterfeit identity and witnesses and a sale deed is executed in the presence of the actual owner. This normally occurs when the owner is living in a foreign country or has vacated the premises many years ago.
Proof: In Mumbai, the police registered several cases where NRIs lost crores because their flats were sold off by imposters using fake documents.
5. Fake Power of Attorney (PoA) Sales
Fraudulent sellers sell properties and in particular land parcels with forged PoAs. Because PoAs are typically used in India (at least prior to the reforms that took place because of RERA), buyers do not bother to check their validity.
Fact: In 2011, the Supreme Court ruled that property sales through PoA are invalid unless executed as part of a genuine development agreement. Yet, misuse continues in many states.
6. Manipulation of Encumbrance Certificates (ECs)
The Encumbrance Certificate should indicate whether the property has been loaned or not. Other times, the fraudsters bribe the officials to conceal the current mortgages and deceive the buyers that the property is free.
Reality Check: The Comptroller and Auditor General (CAG) has flagged irregularities in property registration data in several states, pointing to a systemic problem.
How to Protect Yourself from Property Registration Scams
1. Verify Land and Property Records Online
Most states now have digital land records portals — such as Bhoomi (Karnataka), Bhulekh (UP), Jamabandi (Haryana). Always check the latest mutation records and ownership details.
2. Get Legal Due Diligence Done
Hire a real estate lawyer to verify title deeds, encumbrance certificates, and prior ownership records for at least the last 30 years.
3. Use Government-Approved Circle Rates
Avoid registering below circle rate values. It may save money in the short term, but it exposes you to legal and financial risks later.
4. Authenticate the Seller’s Identity
Insist on cross-checking Aadhaar, PAN, and photographs with the original owner in person. If it’s a PoA sale, verify the PoA at the sub-registrar’s office.
5. Demand Certified Copies
After registration, always collect certified copies of the registered deed and keep digital backups.
6. Stay Updated on RERA and Court Rulings
RERA has made property transactions more transparent, but registration fraud still exists outside RERA’s scope. Keep track of new rules in your state.
In India, property registration scams do not headline on any given day, but they can destroy lives and fortunes quietly. Consumers and particularly first-time homeowners should be informed that due diligence is not a voluntary measure but an obligatory protection against fraud.
If you’re investing in property, work with experienced real estate consultants and lawyers who understand the local ecosystem. A little extra effort today can save you years of courtroom battles tomorrow.
