NRI Scammed Of Rs 10.7 Crore Plot in Gurugram: A Cautionary Guide For Overseas Homeowners

Scam In Real Estate: When a non-resident Indian (NRI) living thousands of miles away discovers his ancestral land worth Rs 10.70 crore has been quietly stolen from under his nose, it is not just a personal betrayal, it is a warning for every overseas Indian who thinks property back home is safe because it carries the family name. The recent case in Gurugram only highlights the risk that NRIs face of being swindled and usurped of their land property in India.

Earlier this year, a person named Manish Kumar and his associates forged a gift deed that made it look as if a New York-based NRI, Gaurav Narula, had voluntarily handed over his land to his so-called brother. The document was registered at the Wazirabad sub-registrar’s office, giving the accused a legal-looking cover to transfer and sell the property. Narula, who has been living in the US since 1982 and inherited the land from his father in 1991, only found out when acquaintances informed him of the shady deal, according to a recent report by PTI.

What Is A Gift Deed

For clarity, a gift deed is a legal document used for transferring ownership of property, be it a flat, house, or a piece of land without any money changing hands. Unlike a sale deed, no consideration is involved. Once registered with the sub-registrar’s office, it usually cannot be revoked. In theory, it is a noble instrument, often used by parents to transfer property to children. In practice, as this case shows, it can be twisted into a weapon for fraud if someone manages to forge signatures and push it through the registrar’s office.

Property Fraud Against NRIs

Narula’s case is not a rare exception. Legal experts and police records have shown that property fraud targeting NRIs is steadily on the rise. One major reason is that their absence provides ample opportunities to fraudsters to manipulate land records and usurp land or property through unscrupulous means. There may be years, if not decades, where an NRI is away, leaving land vulnerable to manipulation and exploitation. Forged or false papers, outdated records, and weak local monitoring make it a perfect recipe for exploitation.

To commit fraud, fraudsters commonly forge documents, impersonate people, and misuse Powers of Attorney (PoA). Unfortunately, most NRIs discover the theft after years of appreciation, after acquisitions have already occurred, and after a lengthy and exhausting legal process has occurred. It isn't just legally complicated, but also emotionally exhausting to reclaim the property by that point.

Safeguards NRIs Cannot Afford To Ignore

Here are some strategies that NRIs can practically apply to safeguard their property and land back in India.

1. Keep property records updated.
   Ownership must be shown in land revenue records along with municipal databases. Too many NRIs leave documents untouched for years, allowing discrepancies to creep in. Regular updates close the door on impersonators.
   
   

2. Appoint someone trustworthy on the ground.
   It can be a caretaker, a professional property manager, or even a close relative who can be entrusted with overseeing the property to reduce the risk of encroachment. Blindly signing a General Power of Attorney, however, is a mistake. Experts strongly advise going for a registered Special Power of Attorney, which limits authority to specific functions. Broad PoAs are an open invitation to misuse.
   
   

3. Leverage government verification systems.
   Some states have begun building safeguards into the system itself. In Karnataka, for example, tahsildar offices keep a record of certified family records tied to Aadhaar details. Verification is usually completed within a week once an affidavit is filed. Linking property records to Aadhaar, Permanent Account Number (PAN), and updated mobile numbers reduce the charges of impersonation. 

4. Consider joint ownership.
   If property is jointly owned by an NRI and a parent, fraudulent transfer becomes tougher, because both signatures are required for transferring land or property ownership. However, this safeguard can complicate inheritance if multiple heirs are involved. What protects against fraud today may cause disputes tomorrow.
   
   

5. Use cooperative housing societies as shields.
   In registered societies, no transfer can occur without endorsement. A flat in Dwarka, Delhi, for instance, falls under the Delhi Cooperative Act, which forces societies to verify dues and clearances before any sale.
   
   

6. Accountability from registrars.
   Usually many frauds pass through the sub-registrar’s office where negligence, or worse, complicity occurs. If a forged document is accepted and registered, officials should be held accountable. Without systemic responsibility, fraudsters will continue to exploit loopholes.